Tag: delivery driver

NEW YORK JUDGE GRANTS FOOD DELIVERY DRIVERS CONDITIONAL CERTIFICATION IN UNPAID WAGES SUIT

On March 5, 2015, a delivery driver for Lychee House, a Chinese restaurant located in Midtown Manhattan, filed a lawsuit against the Company for unpaid wages pursuant to the Fair Labor Standards Act and New York Labor Law.  Plaintiff, Yong Jie Li, and other drivers alleged that the restaurant failed to pay them and others similarly situated the proper overtime pay and “spread of hours” compensation.  Li stated that he worked at least 55 hours per week and received $201.00 per week.

This week, Judge Valerie Caproni of the U.S. District Court for the Southern District of New York, granted a preliminary certification of the class.  This allows the plaintiffs to continue to proceed with the case as a group and will also allow other current or former delivery drivers to join the lawsuit.

Delivery workers employed by restaurants frequently work long hours without being properly compensated.  Non-exempt delivery workers who work over 40 hours per week are entitled to overtime pay at a rate of one-and-one-half times their regular rate of pay.   Also, in New York, if a delivery driver or other non-exempt employee works over 10 hours per day, they are owed additional compensation. It is important to consult with a labor law attorney if you believe you are being denied the proper compensation for your work.

THIRD CIRCUIT REVIVES SLEEPY’S DRIVERS SUIT

As we previously reported, the delivery drivers of Sleepy’s LLC commenced a class action lawsuit alleging that the Company misclassified them as independent contractors, thereby denying them certain employee protections and benefits.

The lower court ruled that the drivers were independent contractors based on a test called the “economic realities test.” The drivers appealed to the Third Circuit, which in turn, requested certification from the New Jersey Supreme Court on the independent contractor issue. The NJ Supreme Court held that the “ABC Test,” rather than the “economic realities test,” should be used in deciding whether the drivers are employees or independent contractors. As such, the Third Circuit ruled earlier this month that based on the NJ Supreme Court ruling, summary judgment in favor of Sleepy’s could not stand. In its decision, the Court stated that it would vacate the grant of summary judgment in favor of Sleepy’s and remand the case back to the district court for it to apply the appropriate test in determining whether the drivers are employees or independent contractors.

This firm will continue to monitor the developments in this case.