Distributor Sues Flowers Foods, Baking Co. Over Misclassification [UPDATE]

The claims detailed on this page have been settled as part of an agreement between the Flowers Foods entities and the plaintiffs in a handful of consolidated cases.

The $9 million settlement, which received the judge’s approval on February 27, 2019, allowed distributors covered by the deal to collect roughly $50 for each week worked within the relevant time period for each lawsuit. For the case on this page, the covered period ran from May 11, 2014 to September 7, 2018.

Aside from monetary payments, the settlement also contained “various other terms designed to strengthen the independent contractor model moving forward,” according to court documents. As part of the deal, distributors who participated in the settlement were required to sign an amended distributor agreement that contained an arbitration provision. The parties noted that arbitration, as opposed to class actions, would allow for “faster and more efficient resolution of disputes,” with Flowers Foods agreeing to pay all filing fees and associated costs.

Moreover, the Flowers Foods entities agreed to establish a distributor advocate position and distributor review panel that would promote the resolution of disputes prior to the commencement of formal arbitration proceedings.

The parties noted in their motion for approval of the settlement that although the plaintiffs and defendants both “continue to firmly believe in the merits of their respective claims and defenses,” the cost and time required to continue litigating the cases and the uncertainty of success for either side warrant a compromise.

“While a number of issues remain unresolved in this litigation, preparation for the Parties’ mediation session enabled counsel to assess the respective strengths and weaknesses of their cases and reach the conclusion that settlement is in the Parties’ best interests,” the document stated.