Virginia shipping company to pay $597,000 in back wages over misclassification

delivery driver or courier

Staffing Industry Analysts (SIA) reports on a settlement of almost six hundred thousand dollars for claims of misclassification:

LaserShip Inc. agreed to pay $597,000 in back wages to 224 employees in Connecticut and New Jersey after it misclassified them as independent contractors instead of employees, the US Department of Labor announced Wednesday.

“By improperly classifying its drivers, LaserShip Inc. denied these employees the wages they rightfully and legally earned,” said Wage and Hour Division Regional Administrator Mark Watson in Philadelphia.

Department investigators found the Vienna, Virginia-based delivery company misclassified workers at its Meriden, Connecticut, location from March 20, 2014, through July 21, 2017, and that it had misclassified workers at its East Brunswick, New Jersey, facility from April 2, 2016, through Aug. 11, 2017.

Drivers were responsible for paying some job-related expenses, including auto insurance, cargo insurance and gasoline among other things. This resulted in some workers earning less than the federal minimum wage of $7.25 per hour. Drivers also did not receive overtime when they worked for more than 40 hours in a work week.

Source: Virginia shipping company to pay $597,000 in back wages over misclassification

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