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Tasty Baking Co., a subsidiary of Flower Foods, has reached a $3.15 million settlement agreement with distributors over claims the company misclassified them and failed to pay them for overtime.
U.S. District Judge Joshua D. Wolson preliminarily approved the class and collective action April 12, 2021. The three Classes — in Maryland, New Jersey, and Pennsylvania — have a combined 226 members, according to Law 360.
A class action lawsuit filed by lead plaintiff William C. alleged Tasty Baking Co.’s practices of misclassifying its delivery drivers as independent contractors rather than employees and failing to pay them overtime violated the federal Fair Labor Standards Act (FLSA).
The FLSA entitles non-exempt workers to certain rights regarding wages, work hours and breaks, and overtime, among other things.
Under the FLSA, non-exempt workers are entitled to be kept to a 40-hour work week or to be paid extra — one and a half times their normal pay rate for any hours worked beyond 40.
The $3.15 settlement fund created by Tasty Baking Co. will be used to pay Class and Collective members, attorney’s fees, and plaintiffs’ service awards.
Plaintiffs and Class Members who choose to participate in the settlement will agree not to disclose the final settlement amount and to release Tasty Baking Co. from any past misclassification claims.
Judge Wolson argued the confidentiality agreement was “too broad,” however.
“The confidentiality agreement is too broad because the reference to ‘any individual or entity’ extends to those that the settlement covers,” Judge Wolson said. “Therefore, the court will approve the settlement only to the extent that the confidentiality agreement allows plaintiffs to discuss the terms of their settlement with other Tasty distributors.”
Each of the current distributors that signs, dates, and cashes their settlement will receive a payment of $3,500.
Tasty Baking Co. continues to deny all allegations of wrongdoing.
Do you believe you may have been misclassified at your job? Tell us about it in the comment section below.
The plaintiffs are represented by Charles J. Kocher of McOmber McOmber & Luber PC and Simon Bahne Paris and Patrick Howard of Saltz Mongeluzzi Barrett & Bendesky PC.
The Tasty Baking Co. Worker Misclassification Class Action Lawsuit is William C., et al. v. Tasty Baking Co., Case No. 2:19-cv-02106, in the U.S. District Court for the Eastern District of Pennsylvania.
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