Echo Global Logistics $6.575M class action settlement

Echo Global Logistics agreed to pay $6.575 million to resolve claims it failed to pay its employees all the wages they were entitled to.

The settlement benefits individuals who worked for Echo Global Logistics in hourly or salaried sales roles during various periods based on the following criteria:

• For hourly salespeople in California: between June 30, 2018, and June 30, 2022
• For salaried salespeople in California: between Dec. 11, 2015, and June 30, 2022
• For hourly salespeople in Illinois: between June 30, 2019, and June 30, 2022
• For salaried salespeople in Illinois between Dec. 11, 2016, and June 30, 2022
• For salaried salespeople outside California or Illinois: between Dec. 11, 2016, and June 30, 2022
• For hourly salespeople outside California or Illinois: between June 30, 2019, and June 30, 2022

Echo Global Logistics is a transportation management company that helps its clients ship goods quickly and cost-effectively. Salespeople working for the company may try to sell these services to prospective customers.

According to a class action lawsuit, Echo Global Logistics fails to pay its sales employees the wages they are owed under federal and state laws. Plaintiffs in the case argue that they are entitled to back wages and other payments for their denied wages.

Echo Global Logistics hasn’t admitted any wrongdoing but agreed to a $6.575 million class action settlement to resolve these allegations. The settlement includes a $37,500 payment to the California Labor and Workforce Development Agency under PAGA.

Under the terms of the Echo Global Logistics settlement, class members can receive a cash payment based on the number of workweeks they worked during their applicable class period and whether they are covered by state laws in California or Illinois. 

Class members should have received a settlement payment estimate with their mailed settlement notice.

Half of each settlement payment will be considered wages and will be subject to a W-2 tax form and applicable taxes and withholdings. The other half of each payment is not subject to deductions and will result in a Form 1099. Class members may wish to consult with a tax professional about how these payments will impact their tax filings. 

The deadline for exclusion and objection is Nov. 21, 2022. 

The final approval hearing for the Echo Global Logistics settlement is scheduled for Jan. 25, 2023.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive their settlement payments through the mail. Class members can update their address on the settlement website to ensure they receive their payments at the correct address.

Who’s Eligible

Individuals who worked for Echo Global Logistics in hourly or salaried sales roles during various periods based on the following criteria:

• California hourly salespeople: between 06/30/2018 – 06/30/2022
• California hourly salespeople: between 12/11/2015 – 06/30/202
• Illinois hourly salespeople: between 06/30/2022 – 06/30/2022
• Illinois salaried salespeople between 12/11/2016 – 06/30/2022
• Hourly salespeople outside of California or Illinois between 06/30/2019 – 06/30/2022
• Salaried salespeople outside California or Illinois: between 12/11/2016 – 06/30/2022

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

11/21/2022

Case Name

Cienega v Echo Global Logistics Inc, Case No. 22-cv-644, in the U.S. District for the Northern District of Illinois, Eastern Division

Final Hearing

01/25/2023

Settlement Website

EchoSalesSettlement.com

Claims Administrator

Cienega v Echo Sales Settlement Administrator
C/O Rust Consulting, Inc.
7751 PO BOX 2396
Faribault, MN 55021-9096
info@EchoSalesSettlement.com
888-764-8871

Class Counsel

Melissa L. Stewart
Justin M. Swartz
Molly J. Frandsen
OUTTEN & GOLDEN LLP

Defense Counsel

Evan R. Moses
Christopher Cascino
OGLETREE DEAKINS NASH SMOAK & STEWART PC

Laura R. Petroff
Jason S. Campbell
Tristan R. Kirk
WINSTON & STRAWN