A class action lawsuit has been filed against the delivery service for allegedly cheating thousands of drivers out of benefits. The lawsuit was filed in the Western District of New York against Velocity Express Corp. on behalf of 5,000 independent contractors who claim they are entitled to employee benefits under New York State and Federal Law.
The class action seeks damages for fraud and breach of contract and claims the plaintiffs, including about 500 New York drivers, do not operate independent businesses and have no significant entrepreneurial opportunity. The drivers claim they have no control over their work assignments and cite evidence that their work is part of Velocity's normal operations, done in the company's name and performed with assistance and direction from the company.
The lawsuit seeks rescission of the contractor agreements signed when hired, as well as money the contractors claim was deducted from their wages in violation of state labor laws. The plaintiffs also seek damages under the federal Employee Retirement Income Security Act and the federal Family Medical Leave Act.
