Tagged Articles

Misclassification 3 articles

Jimmy John’s FLSA lawsuits will not be consolidated

Popular sandwich delivery company Jimmy John’s Enterprises was denied the request to consolidate claims stemming from the chain’s employees, stating they are misclassified under the Fair Labor Standards Act (FLSA) and thus denied basic minimum wage and overtime pay. Jimmy John’s argued that two FLSA misclassification lawsuits against the company were “substantially identical;” however, U.S. District Judge Charles P. Korocas denied the consolidation request without a stated reason. In July 2014, plaintiffs Emily Brunner and Caitlin Turowski filed a putative class action on behalf of current and former Jimmy John’s assistant managers allegedly misclassified by the sandwich chain and its ... Read More

Uber loses FLSA lawsuit over misclassified California driver

Popular ride-hailing service Uber may have its business model turned upside as the California Labor Commission ruled that in accordance with the Fair Labor Standards Act (FLSA), at least one Uber driver, Barbara Ann Berwick, must be classified as an employee, not an independent contractor. In order to avoid paying benefits and overtime-related expenses by treating its drivers as actual Uber employees, Uber’s business model has opted to classify the drivers as “independent contractors,” despite the company’s crucial dependence on the drivers. In defense of this business model, Uber has long stated that it only operates as a software company ... Read More

FedEx settles FLSA class action for misclassified California drivers

FedEx Ground Package System Inc. has agreed to settle a Fair Labor Standards Act (FLSA) class action affecting more than 2,000 misclassified FedEx Ground and FedEx Home Delivery pickup and delivery drivers in California. According to Forbes, FedEx will be resolving the claims made, some dating all the way back to 2000, by means of a $228 million fund. The FedEx settlement came to fruition following a 2014 Ninth Circuit ruling that the company was actively misclassifying its drivers as “independent contractors” in order to avoid granting its employees fair compensation and benefits. The FedEx drivers responsible for bringing the ... Read More