Avis Hit with Class Action Lawsuit for Unpaid Overtime

Florida resident Eduardo Ramos is suing Avis Car Rental on behalf of himself and others in who claim they did not receive overtime pay as employees for the rental car agency. The unpaid overtime lawsuit alleges that Avis violated the Federal Labor Standards Act (FLSA) by failing to pay them overtime, and by misclassifying Ramos and other employees as independent contractors.

Ramos works for the car rental company as a driver, whose occupational duties include transporting vehicles to different locations, and providing various car detailing jobs Avis. He started working at Avis beginning in February 2013 and still currently works there, according to his unpaid overtime class action lawsuit.

Ramos states that since the beginning of his employment, he has been compensated at a “piece rate,” rather than standard minimum wage. Essentially, he and other drivers are compensated per the job they perform, and were not paid by the hour like standard minimum wage employees. Ramos states that he regularly worked 40 hours a week with his regular occupational duties, but had also routinely worked more than 70-hours a week from additional duties the company asked him to perform.

Records show that Avis had never paid Ramos any overtime rates, which is one-and-half times the regular minimum wage rate, and failed to pay him any bonuses, he claims in his unpaid overtime lawsuit. Avis states that Ramos and the other drivers are not paid minimum wage because they are classified as independent contractors, and are therefore exempt from overtime pay. Ramos argues that between the time it took him to transport the vehicles and perform additional duties outside his occupation, he did not have time to work for any other employer.

Ramos states that the company purposefully misclassified him and other drivers to avoid paying overtime, so Ramos and the other drivers are seeking compensation.

Overview of Unpaid Overtime Violations

Under the FLSA, independent contractors are not eligible for full-time benefits, overtime benefits, or any other minimum wage rights. When independent contractors are hired, they are tasked with completing a specific project, and then are typically let go from the company. Therefore, the company does not have to set up a structure which secures them as long-term employees.

While many employers try to classify employees as independent contractors, the FLSA has put in various tests and regulations to insure that no employee is denied their rightful benefits. According to the FLSA, if nearly all of an individual’s income comes from a single company, the independent contractor is classified as an employee. Key indications of an independent contractor becoming an employee include:

• The relationship between the individual and employee appears to be permanent
• The individual lacks bargaining power regarding the terms of his or her employment
• The individual is economically dependent upon the business to which they gave service

Ramos says that he has not only met those requirements, but he is using them as proof that Avis wrongfully denied him and other drivers wages they should have been entitled to receive. Unfortunately, this unpaid overtime lawsuit is an example of a problem that has become commonplace in the world of unpaid wage and hour violations. In the past several years, millions of dollars have reportedly been paid out to settle rental car employee lawsuits, many of which have been filed in California.

This wage and hour lawsuit is Eduardo Ramos v. Avis Budget Group, Case 0:14-cv-61150-WJZ, in the U.S. District Court for the Southern District of Florida, Fort Lauderdale Division.

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.