Lasership Contractors Win Lawsuit

[NonyaBiznes]

Earlier this month, a judge approved a class-action settlement that requires LaserShip to pay $800,000 after drivers in Massachusetts accused the company of wrongfully misclassifying them as independent contractors in order to save money.

Sound familiar?

http://www.huffingtonpost.com/2014/04/24/amazon-delivery-lasership_n_5193956.html

 

[STFXG]

No. Those contractors make less than minimum wage in some cases. Many of those contractors net around 20k a year. Far different than what's going on at ground.

The contracts are far different.


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[HomeDelivery]

sounds as familiar as this:

http://browncafe.com/community/threads/so-maine-settled-for-less-on-the-courts-vs-ground.355954/

 

[MAKAVELI]

No. Those contractors make less than minimum wage in some cases. Many of those contractors net around 20k a year. Far different than what's going on at ground.

The contracts are far different.


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20k a year sounds about what the ground drivers make. Not that much difference between the companies scams.

 

[STFXG]

20k a year sounds about what the ground drivers make. Not that much difference between the companies scams.

Drivers pay and contractors pay. Completely different.


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[HomeDelivery]

sigh... it's similar if you're a single owner-operator at Ground/HD

XXX had to purchase the cargo van he drives for work. He doesn't get reimbursed for the wear and tear he puts on it; for the gasoline he pours into it on a near-daily basis; for the auto insurance he needs to carry; or for the parking tickets he inevitably racks up downtown. He doesn't even get reimbursed for the LaserShip uniform he's obliged to purchase and wear.

Fedex pays the contractor some of that expenses through a higher settlement, but it's similar to a single owner-operator when compared to a Lasership owner-operator

Such companies also aren't obliged to pay workers overtime under federal law, meaning no time and a half when the delivery day stretches into a 12-hour shift. And since they pay drivers on a per-delivery basis, they don't owe them anything for non-delivery work, like loading the van at the warehouse before hitting the road, a task that can take up to two hours.

hmm, sounds like Home Delivery! i don't get paid to load up my van...

The company extracts a variety of fees that can drive down a worker's earnings significantly.

Some of these deductions are on the smaller side, like a $6 weekly "administrative" fee, ostensibly to cover the cost of paperwork and the pay stub itself. Others are more considerable, like a $23 weekly "insurance" fee, separate from the driver's own auto insurance. The "radio" rental, covering the hand-held computer drivers use to scan boxes they deliver, costs another $22.50 per week. Numerous drivers told HuffPost they have no choice but to lease it from the company.

sounds similar when you have to either lease or buy your own POWERPAD & pay for uniforms, and pay for those daily paper printouts of your maps/turn-by-turns/ manifests...

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now scroll down and see the slight differences on the article that the OP posted:

the pay structure for an independent contractor under FedEx came with certain sweeteners that are absent at LaserShip. They included bonuses for being accident-free and for carrying the FedEx brand on his vehicle.

i've seen ON-Trac that used to be staffed w/ a teamster-employee workforce & now are just like this model ~ lot of businesses have become wholly dependent on the independent contractor scheme as a way to keep costs down

 

[STFXG]

You don't get paid to load your van, but your contractor does.




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[HomeDelivery]

soo, what's your point? i don't get paid as well for DEX 02,03,04,11 or dead-heading to the first stop or returning to the barn... but the temp agency that's paying by the hour does pay me for that time
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we all know the drivers are really employees; you're just the middleman to juggle the operating costs & to micro-manage the set of drivers in your service areas

single owner-operators in HD / Ground (if they're still there) are similar to these 3rd-rate companies ~ they're just paid a bit better than Lasership or ontrac

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now how about your 2 cents on the other lawsuit/settlement?

http://browncafe.com/community/threads/so-maine-settled-for-less-on-the-courts-vs-ground.355954/

 

[overflowed]

Damn, STFXG you done pissed him off now! Come to think of it, never seen Dickey mad..

 

[HomeDelivery]

not mad, dude... he is just trying to deflect that lasership, along with those other 3rd party regional courier companies,

has a similar business model ~"independent contractors"

some competent lawyers out there can follow suit if they're as diligent as these lawyers who banked on settlements instead ~ 1.9 million from the Maine ground/hd lawsuit is a nice paycheck, even though they didn't really win the case

 

[STFXG]

The scovil lawsuit covers 2004-2010. Want to guess when the ISP transition started in Maine?

I never said the models aren't SIMILAR. They just aren't the same. One is legal and one is not. Any time the Ground contract is challenged in the courts it gets tweaked. Every year something changes in our contract.



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[STFXG]

Also don't compare a driver/employees pay to a contractors pay. Completely different subjects. Even when it is a single work area contractor.


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[STFXG]

And you are paid for everything you do. It is all built in to your piece rate. If your piece rate falls below minimum wage then you have legal grounds to sue that contractor. How overtime is calculated when using a piece rate varies state by state so if you aren't being paid legally then that contractor is in violation of his operating agreement and can be terminated.



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[HomeDelivery]

true, the good contractors in my hub are constantly looking at the stops per hour & calculating if it's just above the minimum wage requirement

i'm guessing the good ones, like you and bbsam on this site are keeping ahead of the game

my contractor is paying me well also, so no complaints here locally... enough that i don't need all the hassles of being a single owner-operator IC by jumping through the many landmines FredEx Ground has laid out for you every year.

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a few single owner-operators are doing very well since their service areas are very condensed & is close to the terminal (5 to 20 minutes to get to their first stop).

But some others i've talked to, are making the same as me, or less after expenses. so they're stuck with it until they eight break even in their investment or are waiting for the right time to sell ~ just not as low as those 3rd rate companies, but similar

so, how much of your weekly settlement goes to the driver? 45%? or you can't say because of the contract? gag-order on those types of info?

 

[STFXG]

If you're talking strictly wages and not total employment cost then on my worst route it's not even 45%.

I'm an IC. Only ISPs sign the gag order. That doesn't mean I'll get too specific.


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[HomeDelivery]

k, that's why i'm one of the few that is above the min wage range... mainegrounddriver is the other exception (on here)

he showed me his settlement & i'm taking that much away from him. but i do extra things for his business anyways

I've seen others on the same contractor/team that are getting waaaay less than me so i guess it evens out (bad for those drivers)

 

[Future]

In general alllll you fed x scrubs

 

[STFXG]

The driver on my worst route gets $620 per week base pay OR piece rate. Whichever is greater. And during all but peak averages 36 hours per week. During last peak that driver worked between 50-60 hours per week and made 800-950 per week. 2 weeks paid vacation and all holidays are paid.

I feel my drivers are fairly compensated.


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[HomeDelivery]

i guess... i'm just glad i'm clearing over 1k a week now

light day today; i'm donning my mechanic hat instead & is working on the spare vans ~ in time for Saturday service (usually our volume is up on the weekends)

doing oil changes/ brakes/ checking things the main mechanic doesn't do like the rear differential fluid & various latches, internal spring cleaning/hose-down of the cargo areas...

 

[STFXG]

Glad to hear you're being treated so well. Wish I could find a driver/mechanic. Well worth the extra pay you're getting.


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