Mega Settlement For Delivery Drivers
$5.5 Million Settlement for Delivery Drivers Misclassified as Independent Contractors
Martin & Bonnett was successful in obtaining a $5.5 Million settlement for delivery drivers who worked for IntelliQuick and were not paid overtime and or minimum wages as a result of being classified as contractors, not employees. The Complaint filed in the lawsuit in April 2012 alleged that IntelliQuick knowingly misclassified its drivers or couriers as independent contractors, failed to accurate track and record all hours worked, failed to pay drivers statutorily required minimum wages and overtime wages and made unlawful deductions from the drivers’ earned compensation.
The Complaint alleged violations of the Fair Labor Standards Act (“FLSA”), Arizona minimum wage laws, and other federal and state statutes. The lawsuit was filed both as an FLSA collective action and a class action relating to the alleged violations of Arizona Wage Laws.
During the course of the lawsuit, the federal judge presiding over the case made several important rulings including a determination that the IntelliQuick delivery drivers in Arizona were misclassified as independent contractors when, in reality, they are employees for purposes of the federal and state minimum wage and overtime laws.
The court also made a finding that because of the degree of control exercised over the Arizona drivers work, both Intelliquick and its owner/president, Keith Spizzirri, are “employers” of these drivers for purposes of the FLSA and Arizona Wage Laws. This finding by the court meant that all Arizona delivery drivers were entitled to at least the applicable minimum wage for all hours worked and were entitled to overtime pay at one and one-half times the regular hourly rate of pay for all hours worked in a workweek that were more than 40 hours.
As the case moved forward, the judge eventually made a finding that Intelliquick and Keith Spizzirri had intentionally violated the FLSA and Arizona Wage Laws by not paying all minimum wages and overtime due. In addition, the court also ruled that certain provisions of the independent contractor agreements Arizona delivery drivers were forced to sign were not enforceable.
These provisions had to do with taking deductions from drivers’ pay for such things as check processing fees, uniform cleaning, scanners rentals, insurance and certain expenses ordinarily paid by employers and not employees. The court ruled that damages could be recovered by drivers if these deductions caused their pay to fall below minimum wage or caused drivers to be underpaid for either minimum wage or the correct amount of overtime paid to which they are entitled.
As a result of these favorable rulings, Martin and Bonnett’s attorneys undertook negotiations to see if the claims for minimum wage and overtime pay could be settled without the time and risks inherent in a trial and possible appeal. The settlement was approved by the court on May 13, 2019.
Dan Bonnett, Jennifer Kroll, and Mike Licata were the attorneys representing the Plaintiffs.