Judge Grants Preliminary Approval of Corporate Transit of America Settlement
A federal judge in Chicago, IL has granted preliminary approval of a class action settlement between Corporate Transit of America (doing business as Corporate Bank Transit) and two of its couriers. The class action lawsuit alleges that Corporate Transit of America misclassified its delivery drivers as independent contractors, when they were really employees. The lawsuit alleges that, as a result of misclassification, the drivers lost money because they were not reimbursed for business expenses and not paid overtime wages, in violation of federal and state laws.
After many months of extensive negotiations, Halunen & Associates and its clients reached a proposed settlement with Corporate Transit of America. The settlement, if finally approved by the court, requires that Corporate Transit of America will establish a fund of $1.35 million to pay class members who seek reimbursement under the terms of the settlement agreement. Class members will receive a notice and claim form in the mail by January 15, 2010. A final fairness hearing is scheduled for April 15, 2010 in Chicago, IL.