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Court enters consent order requiring USPack Logistics  to pay $575K  to 62 Massachusetts couriers  to resolve allegations of independent contractors misclassification | U S Department of Labor

☷Court enters consent order requiring USPack Logistics to pay $575K to 62 Massachusetts couriers to resolve allegations of independent contractors misclassification | U S Department of Labor

U.S. Department of Labor
| 9| 2
   Court enters consent order requiring USPack Logistics to pay $575K to 62 Massachusetts couriers to resolve allegations of independent contractors ' misclassification In consent judgment , employer agrees to comply with federal wage law at all US locations BOSTON – A courier service that allegedly misclassified drivers as independent contractors at its Shrewsbury location and denied them their rights under the Fair Labor Standards Act will pay a total of $575 , 000 in back wages and liquidated damages to the 62 drivers , and ensure future FLSA compliance at all i......ts U . S . locations under a consent judgment the U . S . Department of Labor has obtained . The consent judgment follows a lawsuit filed by the department in January 2020 against USPack Logistics LLC and its chief operating officer , Frank Powell , after an investigation by the department’s Wage and Hour Division of pay practices at the Shrewsbury location . The department alleged in the case that the company and Powell paid courier drivers per delivery rather than an hourly wage , required drivers to pay for gasoline and vehicle upkeep and deducted various fees and insurance costs from drivers’ pay . These practices allegedly resulted in the company and Powell paying drivers less than the federal minimum wage of $7 . 25 per hour . USPack Logistics LLC and Powell also allegedly violated the FLSA’s overtime requirements when they failed to compensate drivers at one and one - half times their regular pay rates for hours over 40 in a workweek . The department also alleged the employers did not maintain accurate records of the hours worked by the affected employees . In the consent judgment , entered by the U . S . District Court for the District of Massachusetts , the company and Powell agree that they understand the FLSA’s requirements and will continue to make reasonable , good faith efforts to comply with its applicable provisions at all USPack locations . These efforts include ongoing reviews of the FLSA and the company’s practices to ensure that courier drivers are properly classified under the FLSA . View the first amended complaint and consent judgment and order . “Employers must properly classify their employees to ensure that those workers receive all the wages and protection to which they are legally entitled , ” said Wage and Hour District Director Carlos Matos in Boston . “We encourage employers to take the time to understand the difference between employees and independent contractors under the Fair Labor Standards Act , and to contact the Wage and Hour Division with their questions . ”“Misclassifying employees as independent contractors can deprive them of the rights and protections guaranteed them in the Fair Labor Standards Act , ” said New England Regional Solicitor of Labor Maia Fisher , also in Boston . “The U . S . Department of Labor takes very seriously the issue of misclassification because it can function to exclude employees from the scope of the law’s protections . ” The division’s Boston District Office conducted the investigation . The Boston Regional Office of the Solicitor litigated the case for the department . Workers can call the Wage and Hour Division confidentially regardless of their immigration status and the department can speak with callers in more than 200 languages . For more information about the FLSA and other laws enforced by the division , contact the agency’s toll - free helpline at 866 - 4US - WAGE ( 487 - 9243 ) . Learn more about the Wage and Hour Division , including a search tool to use if you think you may be owed back wages collected by the division . Download the agency’s new Timesheet App , now available for android devices , to ensure hours and pay are accurate .


30 September 2022 ( September 30 2022 )



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Court enters consent order requiring USPack Logistics  to pay $575K  to 62 Massachusetts couriers  to resolve allegations of independent contractors misclassification | U S Department of Labor
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