FLSA Deal Reached with Graebel Van Lines Holdings

A $2.65 million deal had been mutually agreed upon by a group of 159 moving truck drivers that had filed Fair Labor Standards Act (FLSA) claims for unpaid wages, according to Law360.

The truck drivers reportedly filed a lawsuit in a federal court in Texas alleging that they had worked for Graebel Van Lines Holdings LLC and multiple subsidiaries for close to half a year without being paid. The FLSA claim was for the last few months prior to the moving company closing its doors when financial struggles were paramount.

As indicated in another report posted recently on WENY.com, a “payroll crisis” arose in November 2016. The litigants, who registered their legal complaint in Houston, sought payment for minimum and overtime wages, incentive pay and related compensation for the time between the initial financial floundering and the dissolution of the moving giant and related companies.

An attorney who represented the plaintiffs told Law360 the truck drivers served customers around the country and provided excellent customer service in the name of Graebel despite clear personal evidence of financial storms brewing.

The wage and hour lawsuit claimed failure to pay what was rightfully due in terms of minimum and overtime wages, poor to nonexistent record-keeping, breach of contract, fraud, and conspiracy, as indicated by WENY.com. While the $2.65 million settlement was signed and approved by U.S. District Judge Gray H. Miller, Graebel has admitted no wrongdoing in connection with the allegations.

Graebel Van Lines is History

As indicated by a ccjdigital.com article, Graebel Van Lines closed its doors on Mar. 22, 2017 by their own admission to their creditors. Research had revealed that the company had been in operation for 65 years in nationwide relocation services, employing 875 drivers as of 2015.

A lawsuit against the company in which a truck driver claimed misclassification was in the process of seeking class action status against Graebel. Graebel claimed to their creditors that this was the reason for the need to liquidate and asked for cooperation and patience.

Claims Still Pending

According to Law360, there are still claims pending against MidCap Funding X Trust which is purportedly the former creditor for Graebel entities. There had been a conditionally certified class action lawsuit against MidCap for the past year in which 120 people had ‘opted in.’ This was recently decertified by the same federal judge that signed the approval for the new settlement.

The decertification happened a number of days after MidCap had requested the driver’s FLSA overtime lawsuit be dismissed by the judge. The magistrate indicated the many differences in how the truck drivers class members believed they were to be paid was a definite roadblock to certification.

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