Logistics Companies Slammed with FLSA Class Action Suit

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A class action lawsuit claims companies owned by Michigan Logistics Inc., Arizona Logistics, LLC and others violated the Fair Labor Standards Act (FLSA) by knowingly misclassifying former delivery drivers as independent contractors. Formerly employed by Diligent Delivery Systems and Parts Authority, the plaintiffs say they were denied proper minimum and overtime wages, as well subjected to unlawful pay deductions for insurance, gas, and repairs to the vehicles they used for work. “By treating the drivers as independent contractors instead of employees,” the complaint says, “defendants have engaged and continued to engage in a scheme to avoid workers’ compensation and unemployment payments, social security, other payroll taxes owed by employers, and other benefits otherwise owed to employees.”

The proposed class covers anyone who works or previously worked for the defendants within the last three years.