DOL seeks dismissal of company’s countersuit of drivers seeking overtime pay
The U.S. Department of Labor has requested that a federal court in Vermont allow the department to intervene and seek the court’s dismissal of a counterclaim that Bimbo Bakeries USA Inc. – one of the nation’s largest baking companies – has asserted against its own truck drivers who are seeking the overtime compensation that they are allegedly owed.
In October 2022, bakery distributor drivers who work for Bimbo Bakeries USA Inc. and Bimbo Foods Bakeries Distribution LLC filed a private lawsuit in the U.S. District Court for the District of Vermont alleging they were misclassified as independent contractors. They claimed that, as employees, the companies owe them overtime back wages.
Bimbo Bakeries then countersued the drivers, seeking restitution of any money the workers earned while working for the companies, trying to offset any back wages or liquidated damages the court may ultimately award to the workers.
DOL’s Office of the Solicitor is now seeking to intervene to dismiss Bimbo Bakeries’ counterclaim. The department argues that the Fair Labor Standards Act (FLSA) does not allow alleged employers to assert these types of claims against their workers who are seeking back wages.
In its filing, DOL said that courts have recognized similar counterclaims tend to discourage workers from asserting their FLSA rights, which would include the right to participate in the department’s investigations and enforcement cases. In addition, the department explained that its enforcement efforts may suffer if employers raise impermissible counterclaims in FLSA cases, as the department depends on workers coming forward to report potential FLSA violations.
“Companies use counterclaims like this one to circumvent the requirements of the Fair Labor Standards Act,” said Solicitor of Labor Seema Nanda. “These companies want to have it both ways – they want the benefits of not paying overtime wages and, if a court says they must pay under the FLSA, they want their employees to reimburse them for their own violations of the law. That is simply not allowed.”
Original article provided by Commercial Carrier Journal.
