From Staffing Industry Analysts, Craig Johnson reports that the maker of Wonder Bread agreed to pay $5.2 million in wages to distributers who were misclassified as independent contractors. Craig writes:
Flowers Foods Inc., the maker of Wonder Bread, agreed to settle an independent contractor misclassification lawsuit for $9 million, the company reported in a filing with the US Securities and Exchange Commission last week.
The company reported the settlement also “contains certain noneconomic terms that are intended to strengthen and enhance the independent contractor model, which remains in place.”
Flowers’ settlement in the class action suit must still receive approval from the court, and the independent contractor model will remain in place after the settlement, according to the Thomasville, Ga.-based company
In the suit, distributors claimed they were misclassified as independent contractors, worked more than 40 hours a week without overtime and that they were owed expenses.
Flowers reported the settlement is comprised of $5.2 million in settlement funds and $3.8 million in legal fees.