Pharmaceutical Delivery Drivers Settle Misclassification Claims for $4.5 Million

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From JDSupra, Richard Reibstein reports on a settlement of misclassification claims by pharmaceutical delivery drivers. Richard writes:

$4.5 MILLION SETTLEMENT OF PHARMACEUTICAL DELIVERY DRIVERS’ CLASS ACTION FOR IC MISCLASSIFICATION.  A West Virginia federal court has approved ‎a $4.5 million settlement of a Fair Labor Standards Act collective action‎ between an industry-leading long-term care pharmacy services provider and a class of 220 pharmaceutical delivery drivers alleging wage and hour violations due to misclassification as independent contractors and not employees. According to the complaint, a delivery company had a business arrangement with the pharmacy services provider in which it used the delivery company’s drivers to deliver pharmaceuticals and medical products to pharmacy customers. The drivers alleged that the pharmacy services provider and the delivery company were joint employers of the drivers, misclassified them as independent contractors, and made all decisions regarding where, when, and how the drivers should perform their work.  The allegations including those about joint employer status were vigorously denied.  The delivery company was voluntarily dismissed from the lawsuit upon its filing for bankruptcy in 2018.  The $4.5 million settlement provides for $2.25 million to be distributed to the delivery drivers and $2.25 million to be awarded as attorneys’ fees and costs.  Young v. Act Fast Delivery of West Virginia Inc., et al., No. 16-09788 (S.D.W.Va. Aug. 18, 2020).

Source: Bloggers and Pharmacy Delivery Workers Are Next Group of Workers to Score Large Payouts in Independent Contractor Misclassification Class Actions: August 2020 Legal News Update | Locke Lord LLP – JDSupra

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