SAN FRANCISCO — Affinity Logistics Corp. delivery drivers gained a victory with the Ninth Circuit in their overtime wage claim. The retail store delivery drivers sued their employer for misclassifying them as independent contractors to avoid paying proper overtime wages. The Ninth Circuit Court of Appeals overturned an August 2012 ruling that determined that Affinity properly classified the drivers as independent contractors. This current ruling comes shortly after a California State Labor Board’s decision in favor of short-haul truckers in a similar independent contractor claim.
Misclassification Claim
Fernando Ruiz, a delivery driver, filed the initial lawsuit in 2005. He claimed Affinity required drivers to sign an “independent truckman’s agreement,” which allowed the company to misclassify the drivers as independent contractors. As independent contractors the company was able to avoid paying the drivers benefits and overtime. In the class action, Ruiz claimed that despite the independent contractor classification, the company treated the drivers like employees in every way except wages. Fortunately for the drivers, in California the burden of proving the drivers are independent contractors is on employers, which Affinity failed to do.
Determining Independent Contractor Status
The Ninth Circuit unanimously decided that the original decision did not give enough weight to the level of authority and oversight Affinity had over the drivers. The Appeals Court’s ruling said the lower court did not properly apply the Borello test in determining whether the drivers were “employees.” The Borello test looks at many employment factors, but places greater significance on the amount of control the employer has over what, when, and how a person does work for the employer. Essentially, the court looks to see if the person has the independence to make their own schedule, decide how the assigned work will be completed, and if the person can hire out their services to others. If the person has this independence, they are likely independent contractors. If not, they are likely employees.
In this case, the lower court made its decision based on the drivers’ ability to hire helpers and other drivers. This could be an indication that the drivers were able to do business outside of their work for Affinity. But according to the Ninth Circuit’s decision, the lower court did not consider the fact that Affinity controlled the drivers’ schedules, including the ability to deny requests for days off; what routes they drove; how much they were paid; the equipment they used; and that it could require the driver to hire helpers and other drivers. When these factors are considered together, the drivers appear to be employees, not independent contractors.
Determining if you are properly classified as an independent contractor can be complicated. If you believe you have been misclassified and are owed overtime wages, call our experienced overtime pay lawyers today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.