Facts

Ramon Garcia, Victor Ramirez, Adrian Valente, Mario Pinion, and Mynor Cabrera filed a class action lawsuit against Macy's West Stores, Inc., Joseph Eletto Transfer, Inc., and XPO Logistics, LLC in relation to defendants' employment and compensation practices.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that they were drivers and helpers who worked delivering Macy's products and furnishings, they did not sign a Delivery Service Agreement with defendants, and were tendered loads at the Macy's Logistics and Operations distribution center. Plaintiffs alleged that defendants committed various violations of the California Labor Code relating to payment of wages, and contended that plaintiffs were entitled to wages owed to them.

DEFENDANTS' CONTENTIONS: Defendants disputed the allegations. Defendants contended that plaintiffs were not employees, but instead were independent contractors.

Result

XPO Last Mile, Inc. agreed to pay $3.5 million on behalf of itself and Macy's West Stores, Inc. to settle the allegations against them. XPO agreed to pay $1.55 million from the total settlement amount in attorneys' fees, along with $11,620.09 in litigation costs.