Pepsi Bottling Co Faces Class Action Lawsuit Over Independent Contractor Classification

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Pepsi Bottling Class Action Lawsuit Overview:

• Why:The plaintiffs claim Pepsi imposes “unlawful, heavy-handed, and oppressive policies” that prevent workers from rightfully receiving benefits and compensation.
• Who: Pepsi-Cola Bottling Co workers in New York lodged a class action lawsuit against the soft drink company.
• Where: The class action lawsuit was filed in New York federal court.

Seven independent contractors filed a class action lawsuit against Pepsi-Cola Bottling Company of New York (PCBCNY) and Pepsi executives for intentionally misclassifying them as contractors, not employees, in order to avoid providing wages and benefits while still exercising significant control over their operations. 

The lead plaintiffs are Terence J. Poletti, Leonard Costa, Christopher J. Chapman, Steven Nieves, Joseph Distasi, Arthur Combs, and Michael Ashton, all of whom are current or former independent distributors of Pepsi-Cola non-alcoholic beverages. They want to represent a Class that includes anyone else who works or has worked as a driver in New York for the Pepsi bottling company. 

New York Drivers Misclassified by Pepsi Bottling Co

The plaintiffs maintain that Pepsi “improperly misclassified” them as independent contractors, and then knowingly and intentionally deprived the plaintiffs of the benefits, privileges, and protections available to other PCBCNY employees, including minimum wage and overtime wages, thus violating several labor laws. 

Also sued in the class action lawsuit are several current and former executives who hold a “direct and material role in the centralized management of the company, and the direct supervision and control” of the plaintiffs. These executives are chairman Harold Honickman and president and chief operating officer Reginald Goins from Pepsi Cola & National Brand Beverages, as well as chief executive officer Jeffrey Honickman, former president and CEO William W. Wilson, Vice Presidents Scott Allmers and Joseph Hayes, and Senior Vice President Joseph Klingler of PCBCNY. 

Pepsi Bottling Controls ‘Every Aspect’ of Contractors’ Jobs 

Although classified as contractors, plaintiffs claim that PCBCNY “oversee[s] and dictate[s] virtually every aspect” of their working lives, rendering the use of the term independent contractors as “meaningless and absurd.” 

Pepsi requires the contractors to affix Pepsi-Cola logos onto their trucks, wear Pepsi-branded uniforms, deliver exclusively Pepsi products, and work exclusively for Pepsi, according to court documents. 

The Pepsi bottling company also allegedly restricts these contractors from having other jobs and “exercising independent judgment in the performance of their duties.”

The class action lawsuit claims that the accused Pepsi executives regularly exercise “significant control” over the plaintiffs’ jobs, including workplace terms, customers, routes, scheduling, and how to load product onto trucks.

Pepsi Bottling Practices Allegedly Short Contractors Out of Money

As contractors, the plaintiffs claim they were “improperly saddled” with significant costs while conducting business for PCBCNY and thus generating millions of dollars in profits for PCBCNY and its management team. Such expenses include truck maintenance, uniforms, company-mandated training, and even the cost for spoiled or expired product, which the complaint notes are “incurred solely for PCBCNY’s benefit.” However, PCBCNY failed and refused to reimburse the distributors for their expenses, according to the complaint. 

Further, plaintiffs claim they have been subjected to improper and illegal deductions from wages and illegal deductions. For example, while working for the Pepsi bottling company, plaintiffs consistently worked over 40 hours per week, but never received overtime pay.

Plaintiffs seek recognition and reclassification as Pepsi employees, the prohibition of Pepsi’s unlawful practices, payment of unlawfully withheld wages, payment of statutory and other damages, and attorneys’ fees. 

What are your thoughts on Pepsi Bottling’s classifications and treatment of independent contractors vs. employees? Sound off in the comments below!

The plaintiffs are represented by Patricia R. Lynch, Clifford R. Tucker, and Luigi Brandimarte of  Sacco & Fillas, LLP.

The Pepsi Bottling Class Action Lawsuit is Poletti, et al. v. Pepsi-Cola Bottling Company of New York Inc., et al., Case No. 1:21-cv-07603, in the U.S. District Court for the Southern District of New York. 

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