UPS May Settle Overtime & Benefits Claims by Independent Contractors

UPS Supply Chain Solutions and its delivery drivers that were classified as independent contractors are close to entering a nationwide class action settlement. UPS classified the drivers as independent contractors, which means the drivers were not paid for overtime, 1.5 times the regular rate of pay for every hour over 40 in a week, and did not receive employment benefits like health insurance. UPS says that it is changing the way it uses independent contractors because of this lawsuit. This lawsuit shows that employers may attempt to avoid paying workers overtime and other benefits of employment by misclassifying someone as an independent contractor while still maintaining control over the worker to such an extent that the classification is unlawful and wrongly denies the worker overtime pay and benefits.

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