Flowers Foods Inc., the bakery that owns Wonder Bread, Nature’s Own and Tastykake brands, is being sued in more than a dozen states by truck drivers who claim they were improperly classified as independent contractors.
The lawsuits allege the company violated the federal Fair Labor Standards Act by classifying drivers on its delivery routes as contractors. The suits seek payment for overtime, employee benefits and other compensation. One of the earliest suits, brought in North Carolina in 2012, was granted class-action status in March, after which 15 more were filed in other states. The most recent suit was brought on Thursday in Texas, bringing the total to 18.
If the company loses in court, Flowers would likely need to buy back drivers’ routes and trucks, said Tim Ramey, an analyst with Pivotal Research Group. However, it could be years before the cases are resolved, other analysts say. Any ruling against Flowers would likely also affect its competitors, many of which also rely on independent drivers, said Eric Katzman, an analyst with Deutsche Bank.
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