From JDSupra, Richard Reibstein discusses a case in which recyclables sorters settled their claims that they were misclassified by a waste management company. Richard writes:
A solid waste management company has reached a proposed class and collective action settlement with 117 garbage and recyclables sorters in lawsuit alleging violations of the federal Fair Labor Standards Act and Maryland wage and hours laws due to the alleged misclassification of the sorters. According to the class and collective complaint, the company “hires employees to work the sorting line on a purported ‘temporary’ basis and treats them as independent contractors, despite the fact that [the company] controls all aspects of the work they do, including but not limited to setting their schedules, assigning their tasks, and requiring them to follow policies established by [the company].” The complaint also alleged that the company paid the “temporary” employees a “daily rate” far below the applicable minimum wage rate, regardless of how many hours worked in a workweek, and that after being treated as independent contractors for months, the company promoted the “temporary” workers to regular “full-time” employees although there was no change in their job duties. The proposed settlement would require the company to pay $670,000 to the eligible sorters, including the class action lawyers’ fees and expenses. Blanco Lopez v. WB Waste Solutions LLC, No. 8:23-cv-00963 (D. Md. Aug. 16, 2024).