Macy’s Calif. Overtime Pay Class Action Settlement Approved

Back in March, a federal judge approved a proposed California overtime class action settlement, wherein Macy’s West Stores Inc. will pay $3 million to settle claims that the retail store deprived their truck drivers and helpers of overtime pay by purposefully misclassifying these employees as independent contractors. The judge approved the Macy’s CA overtime class action settlement and a late increase in the Class’ size despite earlier misgivings.

According to the Macy’s CA overtime class action lawsuit, the department store and Joseph Eletto Transfer Inc., its logistics management company, have a practice of misclassifying over 600 Macy’s truck drivers and helpers as independent contractors. Macy’s and Eletto deny these allegations, but have agreed to settle in order to avoid the uncertainty and cost of continued litigation.

Judge Approves Macy’s California Wage and Hour Class Action Settlement

During the March hearing for the proposed Macy’s California overtime class action settlement, U.S. District Judge Otis D. Wright II granted preliminary approval for the California wage settlement, although he did voice his concerns about the proposed Macy’s truck drivers and helpers Class size, which dramatically increased from about 200 to 600 after the parties filed the preliminary motion for approval.

Judge Wright states, “We were going along fine and everything seemed reasonable, not perfect, but no cause for serious concern, but then suddenly the class trebles, and everything is going to remain the same and I don’t see how everything can remain the same,” according to his ruling.

The plaintiffs’ attorneys informed the judge that the number of Class Members for this Macy’s CA overtime class action settlement rose because Eletto had not realized just how many helpers assist the Macy’s truck drivers. However, the attorneys also pointed out that the number of “work weeks” as defined in Class Period have not changed, making the proposed total California wage and hour settlement amount still appropriate.

After this discussion, Judge Wright did grant preliminary approval for the Macy’s CA wage and hour overtime pay class action settlement. According to one of the plaintiffs’ attorneys, drivers who had been employed by Macy’s at transfer stations for some years may be entitled to over $12,000 in settlement payouts even after the change in Class definition.

Background on Macy’s CA Overtime Pay Class Action Lawsuit

Plaintiffs Victor Fuentes Jose Avila, Mario Navarro and George Garcia Jr. originally filed this California wage and hour class action lawsuit in November 2013 in Los Angeles Superior Court, although defendant Eletto had this case removed to federal court in a few months later.

In this Macy’s CA overtime pay class action lawsuit, the plaintiffs allege that the department store unlawfully classifies Macy’s delivery drivers and helpers as independent contractors even though these employees are “heavily regulated” by various measures, which include: being hired by Macy’s employees, being required to install Macy’s banners on their trucks, not to use the truck for any other purposes when bearing the Macy’s department store banners, being required to wear Macy’s uniforms, and being required to follow and delivery schedule organized and controlled by the popular department store.

The Macy’s CA Overtime Class Action Lawsuit is Victor Fuentes et al. v. Macy’s West Stores Inc. et al., Case No.  2:14-cv-00790 in the U.S. District Court for the Central District of California.

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