Misclassification of Delivery Drivers

U.S. District Court has held that when a company could not demonstrate that three delivery drivers were free from its control, that the delivery drivers had been misclassified as independent contractors and were awarded partial summary judgement.

Three delivery drivers brought suit in U.S. District Court against their employer alleging misclassification by the employer and unlawfully deducted wages. When the drivers moved for summary judgement in their favor, the court put the burden on the employer of showing that the drivers were free from its control.

Here, though there is some dispute about the exact requirements, drivers must drive box trucks. They are circumscribed in how they deliver the products. They are subject to a dress code. They have no control over their customer base. Helpers are prescreened. They are monitored by the employer before, during, and after deliveries. Indeed, the only aspects of their work [delivery service providers (DSPs)] had control over were the aspects that a typical employer would like to relinquish: paying and training additional employees and maintaining tools and equipment.

Therefore, the court held that the employer “cannot relinquish ‘control’ over these costs, retain control over all other aspects of employment, and receive the unfair ‘windfall’ that results from ‘avoiding their statutory obligations, shifting financial burdens to state and federal governments, and gaining an unfair advantage in the marketplace.”

If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.