Axelhire Faces Delivery Driver Misclassification Lawsuit

Axelhire Inc. is facing a new delivery driver misclassification lawsuit from a group of employees alleging the company deliberately misclassified them as contract employees to avoid paying occupation-related expenses.

This delivery driver misclassification lawsuit is being filed by three lead plaintiffs from California, filing legal action on behalf of themselves and other employees similarly situated.

Plaintiffs James K., Krisia B. and Shemicka J. are conjointly filing this delivery driver misclassification lawsuit, with each of the claimants claiming they bore numerous work-related expenses that Axelhire Inc. was supposed to cover.

Axelhire Inc. is a California based company which provides same day delivery services for ecommerce businesses as well as brick and mortar retailers.

According to the delivery driver misclassification lawsuit, the claimants had worked or currently work for Axelhire Inc. during the following time periods:

• James has worked as an Axelhire delivery driver in the Los Angeles area since April 2017
• Krisia had worked as an Axelhire delivery driver in the Los Angeles area from March 2017 to December 2017
• Shemicka had worked as an Axelhire delivery driver in the San Francisco Bay Area from October 2015 to November 2016

Each of the claimants alleges they were not reimbursed for any work-related expenses, including fuel mileage, vehicle maintenance or compensation for all missing wages and overtime.

James, Krisia, and Shemicka each worked or currently still work as delivery drivers and were reportedly never paid a regular hourly wage or overtime from Axelhire Inc. In addition, the claimants were allegedly not provided with the opportunity to take compensated meal breaks or rest periods.

Overview of California Labor Laws

According to the delivery driver misclassification lawsuit, the plaintiffs and other delivery drivers were classified as “independent contractors” and were exempt from minimum wage benefits and overtime pay rates.

In addition to the lack of reliable paychecks, independent contractors are not eligible to be covered for various employment costs including refilling gas, mileage driven and truck maintenance. Axelhire Inc. allegedly misclassified employees on purpose to avoid paying these work-related expenses, and is accused of continuing to do so on a systemic level.

It is important to note that Axelhire drivers have no discretion or supervisors while performing their occupational duties, but are still expected to adhere to company standards and make delivery deadlines. The current minimum wage rate in California is $11 per hour, which can increase 1.5x  if the employee works over 40 hours a week or eight hours in a single day.

California companies are also required to give their non exempt employees 30 minute meal breaks for every five hours, and a 10 minute rest period every four hours. Furthermore, companies are required to cover all employment related expenses that occur during the job including fuel, mileage and insurance coverage.

The delivery driver misclassification lawsuit applies to Axhelhire drivers who worked for the company within four years before the filing of this claim, through the date of final disposition. The proposed Class consists of two subclasses, one of which were allegedly denied meal breaks and rest periods and one group who had allegedly been denied overtime.

This Delivery Driver Misclassification Lawsuit is Case No. 3:18-cv-01621-JCS, in the U.S. District Court of Northern California.