Rachel Lerner
Tue, 09/12/2023
Flowers Foods, a producer and marketer of baked goods, has a reached a settlement agreement in a class action with approximately 475 plaintiffs. Daniel Ludlow brought the lawsuit against Flowers Foods, alleging that he and other drivers were misclassified as independent contractors. Many of the benefits and protections under the Fair Labor Standards Act, such minimum wage and overtime pay, are not afforded to independent contractors. Under California law (called the “ABC test”), workers are independent contractors if they work outside the control and direction of their employers, perform work outside their employers’ normal scope of business, and are customarily engaged in similar kinds of work for other entities.
In the settlement agreement, Flowers Foods said it would set up a $55 million fund to cover settlement payments and resolve the litigation. Additionally, under the settlement, Flowers Foods agreed to repurchase approximately 350 distribution territories in California as it shifts to reclassify workers as employees at a cost of approximately $50 million.
For more information on the legal requirements for classifying workers as employees or independent contractors, visit https://www.mselaborlaw.com/practice-areas/misclassified-ot-ineligible. If you believe that you have been improperly classified as an independent contractor by your employer, do not hesitate to reach out to MSE at info@mselaborlaw.com.
