Snack food giant Utz Quality Foods has agreed to pay $2.5 million to almost 1,900 delivery drivers to resolve claims it failed to pay them overtime.
Drivers in Pennsylvania, Maryland, North Carolina and New Jersey sued the Hanover-based company alleging it incorrectly designated them as being exempt from the Fair Labor Standards Act.
The parties agreed to arbitrate the dispute. Utz agreed to a settlement without admitting any wrongdoing. Drivers in the four states who worked for the company from March 2014 to September 2016 are eligible for compensation under the pact. One-third of the settlement went to legal fees.
Note: Employees are increasingly aware of theand other laws. Employers should regularly review FLSA compliance.