$5 Million Deal Ends Lawsuit Regarding Overtime for Truck Drivers in California

A lawsuit filed against PepsiCo over failure to pay proper overtime for truck drivers in California is being brought to a close as a $5 million settlement deal is negotiated.

According to the lawsuit, PepsiCo and its subsidiaries failed to pay proper overtime for truck drivers in California, as well as failed to provide meal and rest breaks or reimburse appropriate expenses.

The lawsuit also alleges that the drivers were required to monitor their trucks and have their phone on them at all times, even during lunch and rest breaks. The lawsuit argues that this denies them the breaks required by law. Moreover, they were allegedly not properly reimbursed overtime for this work. As a final complaint, the companies allegedly failed to pay reasonable business expenses or even provide final wages when an employee quit or was fired.

Settlement negotiations took some time, involving two failed rounds of mediation, according to Law360. But in May, the parties reached a settlement agreement. The proposed Class of truck drivers asked for preliminary approval of the $5 million settlement agreement it reached with the beverage giant. The agreement would provide $1,988 to each of the plaintiffs involved—around 1,800 workers affected.

“The settlement is reflective of the strengths and vulnerabilities of [the] case, the risk of the court not granting certification, and the risks of losing on the merits to New Bern’s affirmative defenses,” read the motion. “When taking this into account, the proposed settlement is in the best interests of the class.”

The lawsuit was filed under both federal and state labor laws in January 2017. The settlement would apply to a class of drivers who worked for PepsiCo and its subsidiaries, Pepsi-Cola Sales and Distribution and New Bern Transport Corp. since Jan. 25, 2013.

Wage and Hour Regulations

There are a series of both federal and state wage and hour laws put in place to protect workers and ensure they are treated fairly, but many workers across the country do not know the protections that the Fair Labor Standards Act (FLSA) offers. This can lead to employers taking advantage of employees, in some cases requiring unpaid overtime work despite the illegality of doing so.

Some workers may find themselves unable to file wage and hour complaints like this unpaid overtime lawsuit because they are not aware of FLSA rules. Others may be afraid that their employers will retaliate or even fire them if they speak up about these kinds of FLSA violations.

To protect workers who help to enforce FLSA rules, laws also exist to protect workers from discrimination based on wage and hour complaints.

Pursuing an Unpaid Overtime Settlement

If you have worked for an employer like PepsiCo that may have failed to follow the Fair Labor Standards Act or state labor laws, such as overtime requirements, you may be able to either join a wage and hour class action lawsuit or file an unpaid overtime lawsuit of your own.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

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