C.H. Robinson Settles Class-Action Lawsuit on Overtime Pay
C.H. Robinson Worldwide Inc. settled a class-action lawsuit with former employees in a case involving overtime wages.
The settlement, approved by the U.S. District Court on Aug. 22, orders C.H. Robinson to pay $1 million to 249 members of the class, but after attorney fees and other expenses, the net amount will come to about $700,000.
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Lawyers for lead plaintiff Stephanie Mrazik alleged that C.H. Robinson misclassified employees as a “transportation representative” or “transportation sales representative” between June 2009 and January 2016 in order to exempt them from overtime pay under California law. They sued after the company failed to pay the overtime wages under the California Labor Code.
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C.H. Robinson countered that the members of the class were properly classified as exempt from overtime pay and paid all wages due when former employees were laid off.
The two sides reached an agreement in February in order to avoid the expenses of a long court battle.
C.H. Robinson ranks No. 4 on the Transport Topics Top 50 list of the largest logistics companies in North America based on revenue.