Companies agree to pay $7.5 million in independent contractor misclassification settlement

Staffing Industry Analysts (SIA) reports that Cardinal Health and Kinray have allegedly agreed to settle an independent contractor misclassification suit with delivery drivers. SIA reports

A proposed $7.5 million settlement has been reached in a lawsuit involving 115 pharmaceutical delivery drivers who claim they were misclassified as independent contractors and did not receive proper overtime pay, according to a filing in the US District Court for the Eastern District of New York.

Plaintiffs attorneys wrote a letter last week saying a settlement has been reached with defendants Kinray Inc. and Cardinal Health Inc. in the six-year-old lawsuit.

Drivers initially worked for Kinray, but that firm was acquired by Cardinal in Dec. 21, 2010.

The settlement still needs court approval. In addition, if more than three of the plaintiffs opt out of the settlement, the defendants have the right to nullify the settlement.

The lawsuit is Fernandez, et al v. Kinray Inc., et al; case no. 1:13-cv-04938.

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