A Santa Fe Springs food manufacturer has been ordered to pay $650,000 in back wages to 26 delivery drivers who were misclassified as independent contractors and wrongly exempted from overtime pay as a result.
The April judgment by the U.S. District Court for the Central District of California also forbids Romero’s Food Products Inc. from engaging in future Fair Labor Standards Act violations.
The litigation follows an investigation by the U.S. Department of Labor’s Wage and Hour Division which found the drivers were denied the required overtime rate when they worked more than 40 hours in a regular workweek. The investigation covered a period running from Oct. 16, 2017, through Oct. 15, 2022.
Representatives with Romero’s Food Products could not be reached for comment.
The drivers were employed to distribute the company’s food products to Walmart, Costco, Albertson’s, Stater Bros. and other retail grocery outlets throughout California, Nevada, Arizona and Washington.
The investigation also shows Romero’s failed to maintain accurate employee records.
Gayane Aleksanian, assistant director of the Wage and Hours office in West Covina, said combating employee misclassification is a priority for his department.
“Employers cannot illegally pay delivery drivers as independent contractors and defend the violation as a common industry practice,” Aleksanian said in a statement. “Misclassifying employees deprives workers of their basic rights under labor law.”
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