From LANDLINEmag.com, Mark Schremmer reports that truckers are suing the manufacturer of Wonder Bread alleging that the were misclassified as independent contractors. Mark writes:
Another case involving a class of truck drivers who say they were misclassified as independent contractors is set to move forward.
On Tuesday, May 7, the U.S. District Court for the Eastern District of Pennsylvania denied Flowers Foods’ motion to decertify the collective action against the Georgia-based Wonder Bread and Nature’s Own manufacturer over misclassification and lost wages.
The class, which alleges violations against the Fair Labor Standards Act and various state wage laws, consists of drivers in Pennsylvania, Maryland and New Jersey.
The plaintiffs work as drivers and distributors for Flowers – buying the products from Flowers at a discount and then selling it to the customers and delivering the product. Flowers argues that the drivers are independent contractors, because they handle their own sales.
According to court documents, Flowers makes all of the drivers sign a distributor agreement, which labels them as independent contractors. Each distributor is assigned to a defined geographic area, making the distributor responsible for sales and deliveries within that area.
“Flowers may change the ‘terms and prices’ of its sales to distributors ‘at any time,’” the court documents stated. “Distributors must use their ‘best efforts to develop and maximize’ sales in accordance with ‘good industry practice’ and ‘cooperate’ with Flowers’ marketing and sales efforts.”
In addition, the drivers argue that many of the deliveries are to large chains, such as Walmart, and their ability to affect their own sales is minimal.
Read the full story at Misclassification class action moves forward against Wonder Bread manufacturer: Land Line Magazine
How does AB5 affect Independent Distributors of Flowers Foods in California..
I currently own my own business through an S-corp..
How will this affect my business?
Great question. The businesses that hire you will need to determine if you qualify as an independent contractor under the new test. If you are an s-corp and have multiple clients, you may be okay, but it will take a thorough analysis of all the factors in AB5 to make a determination.
Take the A.B.C test if the 3 dont apply to you then u will be fine if it does like say control over your business then they have to buy your route back or make u an employee..