From HRDive, Lisa Burden reports on the settlement of two misclassification lawsuits that alleged truck drivers were misclassified as independent contractors. Lisa writes:
- New Prime Inc. has agreed to settle two misclassification lawsuits for $28 million (Oliveira v. New Prime Inc., No. 1:15-cv-10603 (D. Mass., July 20, 2020)).
- The parties spent more than five years in court, a stint that included a trip to the U.S. Supreme Court over the applicability of an arbitration agreement.
- The truck drivers had alleged the company misclassified them as independent contractors and failed to pay them for time spent in classroom orientation and driving, in violation of the Fair Labor Standards Act (FLSA) and state law. Each of the 40,000 class members may receive at least $100, according to the agreement, which still needs a court’s final approval.
Read the full story at New Prime trucking company settles 2 misclassification suits for $28M | HR Dive