Courier Service to Pay $575k to Drivers Allegedly Misclassified as Independent Contractors
Under a consent judgment entered by a federal court this week, a Massachusetts courier service will pay $575,000 to 62 delivery drivers the U.S. Department of Labor claims were misclassified as independent contractors.
The damages represent $287,500 in alleged back pay for a period of 14 months ending in 2018, plus an equal amount as liquidated damages.
In its suit against the courier service, the Department alleged the drivers did not meet the standard for independent contractors because, among other things, the company controlled their routes, hours, and manner of making deliveries. According to the complaint, the drivers were integral to the delivery service, and the business “could not have existed” without them.
The Department alleged the drivers were paid per delivery, at times resulting in pay below the federal minimum hourly rate. It also alleged a failure to track and pay overtime.
For more information, see: https://www.dol.gov/newsroom/releases/whd/whd20220930-0