PHILADELPHIA — A Pennsylvania federal judge recently gave tentative approval for a settlement to resolve a class action unpaid overtime lawsuit between a snack food manufacturing company and its drivers who claim the defendant failed to pay the plaintiffs all their due wages, including overtime. The $1.6 million settlement between Snyders-Lance and 191 delivery route drivers still needs final approval in November from the District Court judge hearing the case, but will likely be approved if the judge determines the settlement properly compensates the plaintiffs.
The class action overtime pay lawsuit, filed last year in U.S. District Court for the Middle District of Pennsylvania, claimed the North Carolina-based company improperly classified the route drivers as independent contractors when the workers were in fact employees of the company. Under the Fair Labor Standards Act (FLSA), independent contractors are considered to work for themselves and do not receive many of the wage and labor protections associated with the average employee for a company.
Under the FLSA, employers must pay workers one and a half times the employee’s average hourly rate of pay for the hours worked above the 40-hour overtime threshold. However, just like many other companies, Snyders-Lance appears to have misclassified workers as independent contractors to avoid paying these individuals overtime.
The lawsuit also accused the defendant of creating a confusing pay system which enabled the company to underpay its drivers, particularly overtime wages. Unfortunately, this type of system is all too common, especially among hard working men and women in the trucking and delivery industry. Often times, unscrupulous businesses rely on the good nature of workers who assume their company understands and fully complies with all federal and applicable state laws.
In order to qualify as overtime exempt workers, independent contractors must exercise a certain level of control over their day-to-day operations and typically supply their equipment. To help businesses and workers understand the qualifications for independent contractor status, the IRS has a 20 factor test on its website.
Delivery Driver Unpaid Overtime Lawsuit
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you feel that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.