Several Class Actions Filed Alleging Wage Act Violations
BUSINESS LITIGATION SESSION
A class action has been filed by delivery drivers against Postmates, Inc., a delivery service company that allows people to order items from stores and restaurants and have them delivered within an hour. The delivery drivers, known as "Postmates," allege violations of the Massachusetts Wage Act, for Postmates's failure to remit the total funds of the delivery charges received from customers to the delivery drivers, without specifying to customers that the delivery charge does not represent a tip or service charge for the delivery drivers.
BUSINESS LITIGATION SESSION
A class action has been filed against Massachusetts Mutual Life Insurance Company on behalf of its "inside sales employees" alleging violations of the Wage Act. The complaint alleges that the inside sales employees who made telesales from call centers were not paid an hourly rate or a salary, but were paid commissions based on sales made, resulting in in some employees (depending on shift hours and commissions made) being paid an hourly rate consistently below the Massachusetts minimum wage. The complaint also alleges that Mass. Mutual failed to pay inside sales employees overtime and deducted from their commissions the "cost of employment," such as charging employees for use of a desk or internet services at Mass. Mutual's offices.
BUSINESS LITIGATION SESSION
Several valet attendants employed by Mass Park, Inc., which does business as Valet Park of America, have filed a class action alleging violations of the Wage Act. According to the complaint, Mass Park has paid valet attendants at an hourly rate equal to the service rate (as defined by Massachusetts regulations, which is an hourly rate paid to a tipped employee). However, Mass Park has (a) failed to pay valet attendants for all of the hours they actually worked; (b) forced the valet attendants to participate in a tip pool, through which the tips were also distributed to managerial employees; (c) failed to pay valet attendants full minimum wage; and (d) failed to pay valet attendants the full overtime rate.
Clean Harbors Files Suit Against Former Employees and ACV Enviro Over Breaches of Noncompete Obligations
BUSINESS LITIGATION SESSION
Clean Harbors Environmental Services, Inc. ("Clean Harbors") has filed an action against three of its former employees and their current employer, ACV Enviro 1045 RE LLC. Each of the former employees, one of whom had risen to the level of Senior VP prior to his termination, had entered into a non-competition agreement with Clean Harbors. Although Clean Harbors contacted ACV Enviro regarding two of the former employees' noncompetion obligations, it received either an unsatisfactory response or no response from ACV Enviro. The complaint alleges breaches of contract against the former employees, interference with contractual and advantageous business relations against ACV Enviro, and seeks injunctive relief to prevent any ongoing violations.
