Friday, February 19, 2010 by
UPS Supply Chain Solutions settled a wage and hour class action lawsuit filed in California for $12.8 million. At issue in the case was whether UPS had properly classified the drivers as independent contractors versus employees. The case includes claims under the Fair Labor Standards Act ("FLSA") and California state law claims. The average recovery for each member of the class under the FLSA claims was $9,500, and the average recovery for each member of the class under the California claims was in excess of $30,000. No dispositive motions were filed in the case, so it is not clear how the court intended to rule on governing misclassification law.