Case Summary
Filed on November 21, 2018, in the U.S. District Court for the Western District of Tennessee, this collective action alleged that Universal Logistics Holdings and its affiliates misclassified truck drivers as independent contractors, violating the Fair Labor Standards Act and state laws. Lead plaintiff Larry Harris, a driver, claimed the company failed to pay minimum wage and overtime, and made unlawful deductions from wages. Harris sought to represent thousands of similarly situated drivers nationwide. The court conditionally certified the FLSA collective action in 2019, enabling notice to potential opt-in plaintiffs. The case highlighted systemic misclassification issues in the transportation industry and ultimately proceeded toward a class-wide settlement.
Status or Result
The court granted conditional certification of the FLSA collective action in 2019. The parties later reached a settlement, with the court granting preliminary approval of a $2.5 million settlement fund in 2020 and final approval in 2021, resolving the claims without trial.
Key Disputes
Whether the plaintiff drivers were employees entitled to minimum wage and overtime protections under the FLSA, or independent contractors not covered by these statutory safeguards.
Social Impact
The case reinforced scrutiny of independent contractor misclassification in the trucking and logistics industry. It resulted in substantial monetary recovery for thousands of drivers and encouraged similar wage-and-hour collective actions. It also placed pressure on carriers to review their classification models to avoid liability under federal and state labor standards.
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