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

August 20, 2019

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.

Attorneys fees in the lawsuit will total around $2.5 million, and the minimum payment to be received by drivers taking part in the lawsuit is $2,500. However, only one driver will be receiving the minimum amount, according to the letter.

Plaintiffs are a group of 115 drivers who delivered prescription medications and pharmaceutical products; they worked for Kinray and Cardinal as delivery drivers at various times since Sept. 4, 2007, according to the court filings. Plaintiffs claim they worked more than 40 hours per week, sometimes as much as 80, and didn’t get overtime pay.

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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