From JDSupra, Richard Reibstein discusses the settlement of a nine (9) year class action lawsuit alleging delivery drivers were misclassified by a logistics company. Richard writes:
LOGISTICS COMPANY IN ILLINOIS SETTLES NINE-YEAR LITIGATION FOR IC MISCLASSIFICATION FOR $2.1 MILLION. An Illinois federal court has preliminarily approved a $2.1 million class action settlement between a logistics company and delivery drivers that alleged they had been misclassified as ICs under an Illinois wage and hour law. Two delivery drivers initially brought the action on behalf of themselves, and others similarly situated alleging that Diakon Logistics, a company that coordinates delivery and installation of merchandise for retailers nationwide, misclassified them as ICs instead of treating them as employees under the Illinois Wage Payment and Collection Act. The drivers alleged that, as a result of being misclassified, the company violated that Illinois law by making unlawful deductions from the drivers’ wages. On March 31, 2025, a federal court agreed that the drivers had been misclassified, as we noted in our blog post of May 12, 2025. After nine years of litigation, including a motion for class certification, competing summary judgment motions, and an appeal to the U.S. Court of Appeals for the Seventh Circuit, the company settled the case, agreeing to pay each class member at least $130 for every week they provided services to the company. A fairness hearing is scheduled for October 31, 2025. Johnson v. Diakon Logistics, No. 1:16-cv-06776 (N.D. Ill. Aug. 8, 2025).
