Car service company in New York settles overtime lawsuit

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A New York-based car service company agreed to a class-action settlement with 489 of its drivers who claimed time and attendance violations related to unpaid overtime, according to Mondaq. The violations are said to have occurred between 2007 and 2011, when drivers were classified as independent contractors as opposed to company employees.

The violations took place under both New York State Labor Laws as well as the Fair Labor Standards Act.

Mondaq wrote that even after being correctly classified as employees in 2011, drivers were not given back pay for the time period during which the violations took place. Plaintiffs state that not only did their employer deny them overtime payments, but the company also kept gratuities made by passengers to drivers, as well charged them for fuel purchases, aesthetic maintenance and in-car consumer amenities like newspapers and bottled water. The drivers also stated that they received deductions for car usage outside of working hours as well.

The class-action suit was sent for mediation. As a result of this process a settlement of $3.5 million was agreed upon and will be split among those drivers who participated in the lawsuit.



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