Huggins v. Lasership, Inc.

CourtDistrict Court, E.D. Virginia
DecidedMay 14, 2025
Docket1:24-cv-02345
StatusUnknown

This text of Huggins v. Lasership, Inc. (Huggins v. Lasership, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huggins v. Lasership, Inc., (E.D. Va. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF VIRGINIA Alexandria Division

KELVIN HUNTER & ABDUL NGOBEH, ) on behalf of themselves and all others ) similarly situated, et al., ) ) Plaintiffs, ) ) v. ) Civil Action No. 1:24-cv-02345-AJT-IDD ) LASERSHIP, INC. ) d/b/a ONTRAC FINAL MILE, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER In this Fair Labor Standards Act (“FLSA”) action,1 Plaintiffs Kelvin Hunter and Abdul Ngobeh (“Plaintiffs”) allege that Defendant LaserShip, Inc. (d/b/a OnTrac Final Mile) (“OnTrac”) and its contractors, acting as joint employers, are misclassifying delivery drivers as independent contractors and failing to pay them overtime wages. [Doc. No. 1] ¶ 74. Before the Court is Plaintiffs’ Motion for Court Authorized Notice Pursuant to 29 U.S.C. § 216(b), [Doc. No. 29] (the “Motion”), which the Court took under advisement following a hearing on April 30, 2025. Upon consideration of the Motion, the memoranda and exhibits submitted in support thereof and in opposition thereto, the argument of counsel at the hearing, and for the reasons stated below, the Motion, [Doc. No. 29], is GRANTED, upon the terms and conditions stated herein. I. BACKGROUND As alleged in the Complaint, OnTrac is a last-mile delivery service headquartered in McLean, Virginia and operating in approximately thirty-five states. [Doc. No. 21] ¶ 2. It has four

1 Plaintiffs also bring suit under the Virginia Overtime Wage Act, Virginia Wage Payment Act, and Virginia Misclassification Law, [Doc. No. 21] at 1-2, although only notice under the FLSA claim is the subject of the Motion. [Doc. No. 30] at 1 n.1. Virginia warehouses, at which approximately 745 “Master Contractors” employ approximately 4,100 delivery drivers to deliver packages from these four facilities alone. [Doc. No. 36] at 12. OnTrac contracts with Master Contractors, which hire delivery drivers who are classified as independent contractors and complete delivery services on OnTrac’s behalf. [Doc. No. 21] ¶ 3; [Doc. No. 30] at 10.

Hunter worked for two Master Contractors at two of OnTrac’s Virginia facilities,2 [Doc. No. 30-4] ¶¶ 2-3, and Ngobeh worked for a different Master Contractor out of a Virginia OnTrac warehouse and a Maryland OnTrac warehouse. [Doc. No. 30-5] ¶¶ 1-2. Plaintiffs’ affidavits uniformly describe that, even while working for different Master Contractors and at different OnTrac facilities, at the start of the workday, the drivers were expected to report to a OnTrac warehouse, log into OnTrac’s application, run a query that dictates what packages they are responsible for delivering, gather and load the packages from the OnTrac warehouse into their vehicles, and begin delivering them through a route that OnTrac arranges for each driver. [Doc. No. 21] ¶¶ 41-44, 57-58; [Doc. No. 30-4] ¶¶ 5, 7; [Doc. No. 30-5] ¶ 4. While completing deliveries,

OnTrac dispatchers are in communication with the drivers, and if there are any changes to the route, a OnTrac dispatcher will contact the driver directly to adjust their schedule for the day. [Doc. No. 21] ¶ 45; [Doc. No. 30-4] ¶¶ 8-9; [Doc. No. 30-5] ¶¶ 6-7. During the day, the drivers are compensated based on the number of packages they deliver, and they receive no extra pay for delivering packages for more than forty hours a week. [Doc. No. 21] ¶ 55; [Doc. No. 30-5] ¶¶ 13- 14; [Doc. No. 30-4] ¶¶ 15-16. Hunter works approximately ten hours per day, seven days per week and is paid between $2.25 and $2.50 per package. [Doc. No. 30-4] ¶¶ 11, 14. Similarly, Ngobeh generally works

2 At the time of his hiring, OnTrac completed Hunter’s background check. [Doc. No. 30-4] ¶ 4. between ten to twelve hours per day, seven days a week, and is paid $1.30 per package. [Doc. No. 30-5] ¶¶ 9, 12. Both Plaintiffs interact with drivers for other Master Contractors working at OnTrac facilities and know that they receive similar pay, work similar hours, and do not receive overtime compensation. [Doc. No. 30-4] ¶¶ 17-18; [Doc. No. 30-5] ¶¶ 15-16. Plaintiffs’ declarations echo those that were filed in a parallel FLSA litigation that is

currently pending in the Southern District of New York.3 See West v. Lasership, Inc. et al., No. 1:21-cv-5382 (S.D.N.Y. filed June 17, 2021). In the West action, the lead plaintiffs filed an action under the FLSA and the New York Labor Law alleging that delivery drivers were misclassified as independent contractors while being jointly employed by OnTrac and Master Contractors,4 and in support of that position, filed the declarations of ten delivery drivers who worked for nine Master Contractors out of three New York OnTrac facilities, all of which confirmed that the delivery drivers also were responsible for sorting packages at the OnTrac facility before delivering them, paid per delivered package, and did not receive overtime pay. See [Doc. No. 30-6] at 89-90, 92- 93, 97-98, 100-01, 103-04, 106, 108-09, 111-12, 114-15, 117-18.

Based on the declarations filed in this and the West action, Plaintiffs contend that they have sufficiently alleged and established at this stage of the litigation that OnTrac jointly employs the Plaintiffs with the Master Contractors, regardless of what Master Contractor they work for, thereby misclassifying them as independent contractors and improperly depriving them of overtime pay, id. ¶¶ 4-5, 28-39; and based on these contentions, seek authorization pursuant to 29 U.S.C. § 216(b) to provide notice of this action, with an opportunity to opt-in, to all delivery drivers nationwide

3 In the West action, a magistrate judge denied the plaintiffs’ first motion for collective action certification after months of discovery, and in light of the significant amount of discovery that had been conducted, applied the heighted “modest plus” standard. See West v. LaserShip, Inc., No. 1:21-cv-05382, 2024 WL 1461403, at *6 (S.D.N.Y. Apr. 4, 2024). A renewed motion for collective action certification based on addition declarations is pending. Second Motion to Certify Class, West v. LaserShip, Inc., No. 1:21-cv-05382 (S.D.N.Y. Oct. 10, 2024), ECF No. 147. 4 First Amended Complaint, West v. LaserShip, Inc., No. 1:21-cv-05382 (S.D.N.Y. Sept. 7, 2021), ECF No. 22. who worked for OnTrac through one or more of its Master Contractors at any time since December 23, 2021 and did not sign an arbitration agreement. II. STANDARD OF REVIEW Pursuant to the FLSA, an employee may bring an action against their employer “on behalf of himself or themselves and other employees similarly situated.” 29 U.S.C. 216(b). FLSA

collective actions are intended to resolve common issues of law and fact in one proceeding and lower the individual costs of vindicating rights. See Hoffman-La Roche Inc. v. Sperling, 493 U.S. 165, 170 (1989). “The ‘notice’ stage of an FLSA collective action is also known as the ‘conditional certification’ stage.” Purdham v. Fairfax Cnty. Pub. Sch., 629 F. Supp. 2d 544, 547 (E.D. Va. June 22, 2009). District courts have significant discretion in deciding whether to facilitate notice to prospective plaintiffs in FLSA collective actions. Hoffmann–La Roche, 493 U.S. at 169. The prevailing framework applied throughout this district and the Fourth Circuit for facilitating notice is the two-step Lusardi framework.5 See, e.g., Miller v. Leidos, Inc., No. 1:24- cv-931 (PTG/LRV), 2025 WL 938107, at *2 n.2 (E.D. Va. Mar. 27, 2025). At the first step of this

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