PepsiCo reaches $5 million settlement in trucker wage theft lawsuit
Truck drivers at the center of a class action wage lawsuit against PepsiCo are waiting for approval of a preliminary settlement, according to California federal court documents. If granted, PepsiCo will cough up $5 million for failure to pay overtime and work done during lunch and rest breaks.
On June 22, attorneys for a class of PepsiCo truck drivers submitted a motion for preliminary settlement approval in a lawsuit that was originally filed in March 2017. According to court documents, Purchase, N.Y.-based PepsiCo has agreed to a $5 million settlement for approximately 1,800 drivers employed between Jan. 25, 2013, and the date the court issues an order preliminarily approving the settlement.
If each class member participates in the settlement, each driver will receive an average of nearly $2,000, totaling $3.58 million of the $5 million settlement. Attorneys will collect 25 percent of the settlement, or $1.25 million. The settlement administrator will receive up to $25,000.
Nathaniel Helton, the named plaintiff, will receive no more than $7,500.
On March 6, 2017, Helton filed the lawsuit against Pepsi-Cola Sales and Distribution along with New Bern Transport, PepsiCo’s trucking company. The lawsuit alleges PepsiCo failed to compensate drivers for time worked, including lunch breaks, rest breaks and overtime.
According to the lawsuit, PepsiCo had consistently clocked out drivers for 30-minute meal periods even though drivers often worked during those periods. Drivers also were required to work for over four hours without a 10-minute rest period, which violates California state labor laws. California law also requires employers to pay employees one hour of pay for each day a rest period is not provided, which the lawsuit alleges PepsiCo failed to do.
Furthermore, the lawsuit alleges that PepsiCo failed to timely pay wages owed to drivers who left the company or were terminated. LL
Wage lawsuits are becoming increasingly more common. Here’s another one to catch up on.