From Top Class Actions, Joanna Szabo reports that delivery drivers for Genesis Intermodal Delivery have settled claims alleging that they were misclassified as independent contractors. Joanna writes:
A class of delivery drivers is waiting for final approval from a federal court for their $2 million agreement in a California misclassification lawsuit.
According to the Genesis Intermodal Delivery drivers’ California misclassification lawsuit, the company misclassified these drivers as contractors rather than employees in order to avoid paying certain benefits and other expenses that would be granted to employees.
After the class actionreached preliminary approval, notice of the class action agreement was sent to nearly 200 eligible delivery drivers who had allegedly been misclassified as contractors.
The lead plaintiff, Jorge Cabrera, alleges that Genesis Intermodal misclassified workers as independent contractors despite performing the duties of employees, and also failed to pay meal and rest period wages or provide accurate pay stubs.
Though Cabrera initially filed the California misclassification lawsuit in California state court in September 2014, it was eventually removed to California federal court in March 2015.
The California misclassification lawsuit agreement requires that Genesis Intermodal Delivery Inc. pay around $1.44 million total to the 197 members involved in the class, amounting to a substantial sum per class member.
The highest payment a class member will receive is around $20,000, and the average is around $7,300.
The payment amounts are determined by the number of weeks each class member worked during an allotted period of time. The rest of the agreement money will go to attorneys’ fees, the lead plaintiff, and other payments.
Read the full story at Drivers Wait for Final Approval in $2M California Misclassification Lawsuit