A Sales Coordinator has initiated legal action against Steam Logistics, LLC, alleging that the company improperly classified employees as exempt from overtime pay, violating the Fair Labor Standards Act (FLSA). The lawsuit, filed on December 19, 2024, in the Eastern District of Tennessee, seeks to recover unpaid overtime compensation and liquidated damages for the plaintiff and other similarly situated employees.
The complaint asserts that Steam Logistics required Sales Coordinators to work overtime to complete their duties but denied them overtime pay by misclassifying them as exempt employees. According to the lawsuit, the primary job duties of Sales Coordinators involved non-exempt work, including selling and providing freight brokerage services.
This case sheds light on a potentially widespread issue in the logistics industry, where employee misclassification may be depriving workers of rightful overtime compensation. The lawsuit has been filed as a putative collective action under the FLSA, allowing other Sales Coordinators and employees in similar roles to join the case and seek compensation for unpaid overtime.
Reena I. Desai, one of the attorneys representing the plaintiff, stated, 'We believe that misclassification of employees is a common practice in the logistics industry. Employees who primarily perform non-exempt work like the Sales Coordinators included in this case should be paid overtime even if they are paid by salary. We hope to help them recover the pay that has been withheld from them.'
The implications of this lawsuit extend beyond Steam Logistics and could potentially impact the entire logistics sector. If successful, it may prompt other companies in the industry to reassess their employee classification practices and ensure compliance with labor laws. This case underscores the importance of proper employee classification and fair compensation practices in an industry that plays a crucial role in global trade and commerce.
For employees in the logistics industry, particularly those in sales and coordination roles, this lawsuit serves as a reminder to be aware of their rights regarding overtime pay. It also highlights the need for companies to carefully evaluate their classification of employees to avoid potential legal challenges and ensure fair compensation practices.
The case, titled Shelton, et al. v. Steam Logistics, LLC (Case No. 1:24-cv-393), is being handled by attorneys from Nichols Kaster, PLLP, a firm with offices in Minneapolis, Minnesota, and San Francisco, California. The firm has a track record of representing plaintiffs in employee, consumer, and civil rights cases across the country.
As this lawsuit progresses, it may set a precedent for similar cases in the logistics industry and potentially lead to broader discussions about employee classification and overtime pay practices. The outcome could have significant implications for both employers and employees in the sector, potentially reshaping compensation structures and employment practices in the logistics industry.
