Michigan Logistics, Inc. and California Logistics, Inc., which do business in California as Diligent Delivery Systems, and Interamerican Motor Corporation are the defendants in a proposed class action over alleged Fair Labor Standards Act (FLSA) abuses. According to the 40-page complaint, these abuses provide the defendants with “a significant competitive advantage” over similar companies.
The case claims the plaintiff worked for Diligent Delivery Systems as an auto parts delivery driver from 2006 through November 2016 and was classified not as an employee, but as an independent contractor. The case asserts the plaintiff and similarly situated individuals were incorrectly classified, as a clear employee-employer relationship exists between the parties, and are therefore entitled to time-and-a-half overtime pay as laid out by the FLSA.
“Diligent benefits greatly by misclassifying its drivers as independent contractors,” the lawsuit argues. “By treating its drivers as independent contractors, Diligent operates a scheme to shift its business expenses to its employees. Diligent requires drivers to pay for insurance, gas, repairs, and maintenance of their own vehicles in order to receive work from [the defendants].”