MINNEAPOLIS, MN., October 19, 2026: A former delivery driver for Vadnais Heights-based Timberland Transportation, LLC, doing business as Priority Courier Experts (“Priority”), today filed a class action lawsuit in Ramsey County District Court alleging the company misclassified its drivers as independent contractors when they were, in fact, employees. The case may be the first class action brought under Minnesota’s strengthened worker misclassification statute, Minn. Stat. § 181.722. Halunen Law attorneys Clayton Halunen, Susan Coler, and Tara Jensen represent plaintiff Lamar Allen Hairston and the proposed class.

“Priority’s drivers are the backbone of its business. They carry its name on their uniforms and vans and follow its every instruction, yet the company calls them independent contractors with the result that the drivers pay costs for operating and maintaining their vehicles and don’t get paid overtime,” said Clayton Halunen, Managing Partner of Halunen Law. “The Legislature strengthened this law precisely to stop this type of practice. We intend to use it to make sure Priority’s drivers receive what Minnesota law guarantees every employee.”

According to the complaint, Priority requires its drivers, whom it calls “Fleet Partners,” to sign standardized independent-contractor agreements. Yet the lawsuit alleges Priority controls nearly every aspect of the job,including setting customer prices and driver pay, as well as controlling day-to-day work assignments and how the drivers complete the deliveries. At the same time the drivers bear the extensive costs of vehicle leases, fuel, insurance, maintenance, uniforms, and equipment. The plaintiff in this case, Lamar Hairston, routinely worked 10 to 14-hour days, but, as alleged in the complaint, after paying expenses he may not even have earned minimum wage for the day’s work, let alone received a premium for overtime. Drivers also receive none of the benefits Priority provides its employees, such as health insurance, paid time off, and a 401(k) match, and are excluded from workers’ compensation, unemployment insurance, and earned sick and safe time.

In 2024, the Minnesota Legislature declared its state policy to prevent employers from misclassifying workers and strengthened the misclassification statute, allowing workers to sue directly for compensatory damages and civil penalties of up to $10,000 per violation. The lawsuit seeks to represent all Minnesota drivers Priority classified as independent contractors during the past three years, a group the complaint says likely numbers in the hundreds. It seeks unpaid wages and overtime, reimbursement of expenses, lost benefits, statutory penalties, and a declaration that the drivers are employees under Minnesota law.

Read the full Complaint.


About Halunen Law:
 Offering experienced representation to employees and whistleblowers nationwide, Halunen Law has achieved a reputation as a fearless, tenacious, and successful law firm focused on achieving justice and meaningful results for its clients. See halunenlaw.com.

Halunen Law represented one of the class plaintiffs and was a class counsel in the case, Russo et al. v. Walgreens, alleging overcharges for certain prescription drugs in excess of Walgreens’ savings club prices. The class action settled for $100 million after being litigated for seven years, and is under the supervision of the federal district court in Illinois.

The federal district court in Illinois, which is overseeing the case, issued a recent order recently directing the processing of claims. In the next several months, the claims will be reviewed, deficiencies will be addressed, and payments will be issued.

If you have filed a claim, additional information is available at Walgreens Savings Club Settlement.

“Halunen Law is pleased that the case has settled, said class action attorney Susan Coler. “It has been a long haul, but Walgreens has ceased the challenged conduct and the persistence and patience of the class representatives has brought results for millions of Walgreen’s customers who filed claims.”

 
Clay Halunen

The founder of Halunen Law, Clayton Halunen spent more than 25 years as a trial lawyer seeking justice for employees, from delivery drivers to CEOs, in individual, class action, and whistleblower cases. Raised in northern Minnesota by parents who both experienced workplace discrimination, he built his career holding powerful companies accountable for illegal conduct, including some of the largest corporations in the country. His work includes a $1.5 billion settlement in a pharmaceutical fraud False Claims Act whistleblower lawsuit. Learn more about Clayton Halunen.

 

On May 20, 2024, the Minnesota legislature passed a groundbreaking bill aimed at tackling the prevalent issue of employer misclassification fraud. This pervasive problem, which affects workers across Minnesota and many other states, involves employers incorrectly classifying workers as independent contractors rather than employees. This misclassification allows employers to evade paying employee benefits, protections, and compensation such as overtime pay, workers’ compensation, earned sick and safe time, and more.

Key Provisions of the New Law

The new Minnesota law grants misclassified employees the right to sue for proper classification as employees if they can prove they meet the state’s recognized tests under workers’ compensation or unemployment laws. For all industries except construction, Minnesota’s Department of Labor and Industry (DOLI) uses the state’s Workers’ Compensation or Unemployment Compensation test to determine if a worker is an independent contractor or employee. These tests focus on five factors:

  1. The right to control the means and manner of performance.
  2. The mode of payment.
  3. The furnishing of tools and materials.
  4. Control over the premises where the work was done.
  5. The right of discharge.

For Workers’ Compensation, DOLI also refers to 34 different tests based on the industry in which the individual works. See 5224 – MN Rules Chapter.

The general tests to determine proper classification often include the following criteria:

  1. The company controls the means and manner in which the worker performs their job.
  2. The work performed is essential to the company’s business.
  3. The worker is not required to make any independent investment in the work.
  4. The company provides the primary tools and resources necessary to complete the work.
  5. The worker has limited ability to make any profit or suffer any loss.

If these factors indicate employee status rather than independent contractor status, the law ensures proper classification and provides for damages equivalent to the benefits and compensation the worker would have received if not misclassified. Additionally, the law imposes a $10,000 penalty for each violation. Employers who misclassify a large number of workers may face class action lawsuits, exposing them to substantial liability including compensatory damages, back pay, benefits, penalties, and attorney fees and costs.


Commonly Misclassified Positions

The following types of positions are often misclassified:

    • Rideshare
    • Food delivery
    • Graphic design
    • Freelance writers
    • Delivery drivers
    • Social media management
    • Construction workers
    • Sales reps
    • Administrative support
    • Cleaning staff
    • Content creators
    • IT professionals
    • Healthcare workers

Advocacy and Expertise

Josh Newville, Head of Halunen Law’s Employment Law Litigation Group, expressed strong support for the new legislation, stating, “Employment misclassification hurts working men and women by denying them the basic benefits of employment they are entitled to, such as minimum wage, overtime pay, and benefits like health care, retirement, disability coverage, and sick time. This new law empowers misclassified employees to seek all the benefits they deserve and ensures employers bear the costs of such actions.”

Halunen Law is prepared to represent individuals and small groups of employees alleging claims under the amended law and is also well-equipped to handle employee misclassification cases on a class-wide basis. The firm played a pivotal role in the FedEx Driver Misclassification Litigation, the largest nationwide drivers’ misclassification class action ever filed in the United States. This case, which spanned over 32 states, settled after more than a decade of litigation for $466,000,000. Halunen Law is prepared to pursue these cases in Minnesota, which now boasts the strongest misclassification law in the country, offering the most significant remedies of any state.

Conclusion

The passage of this new law marks a significant victory for workers in Minnesota, providing them with robust legal tools to challenge misclassification and secure the benefits and protections they rightfully deserve. Employers must now carefully evaluate their classification practices to avoid substantial penalties and legal actions.

 

Clay Halunen

The founder of Halunen Law, Clayton Halunen spent more than 25 years as a trial lawyer seeking justice for employees, from delivery drivers to CEOs, in individual, class action, and whistleblower cases. Raised in northern Minnesota by parents who both experienced workplace discrimination, he built his career holding powerful companies accountable for illegal conduct, including some of the largest corporations in the country. His work includes a $1.5 billion settlement in a pharmaceutical fraud False Claims Act whistleblower lawsuit. Learn more about Clayton Halunen.

Nationwide retailer Dillard’s recently settled an employment discrimination lawsuit brought by workers who say the department store forced them to provide detailed medical information in order to use their sick days. The class-action suit lasted for four years and was lead largely by the Equal Employment Opportunity Commission.

The EEOC says that the company forced employees to provide documentation about their specific medical conditions, going beyond a simple requirement that they have a doctor’s note confirming that they were being treated at all.

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Back in grade school, taking a sick day meant coming in the next day with a note for the teacher explaining the absence. The Equal Employment Opportunity Commission says the national department store chain Dillards took that old-school practice too far when it required detailed information about employees’ medical conditions in return for sick leave. Dillards is settling with the EEOC for $2 million, bringing to an end a four-year class action suit alleging violations of the Americans with Disabilities Act. As is usual in these cases, Dillards denied wrongdoing and says it settled to get the whole thing over with.

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truck driver pay lawsEmployee misclassification has become a huge problem in the United States. Employers who want to increase profits by not paying withholding and other taxes and escaping liability for workers’ compensation and unemployment claims will often claim that their workers are ‘independent contractors’ or ‘consultants’ (ICs), even though these people perform jobs that go to the heart of the employer’s business.

As an example, it has become almost automatic for operators of trucking, courier, and delivery services to use only independent contractor drivers. Why? The answer is simple- they save hundreds, maybe millions, of dollars each year by stiffing workers of benefits like 401(k) matches, insurance coverage, overtime, etc.

For many years now companies have largely gotten away with this intentional misclassification by requiring workers to sign agreements with arbitration clauses and class action waivers. When workers challenged misclassification they were required to do it individually, rather than as part of a larger group of workers, and had to submit their claim to an arbitrator rather than a judge (arbitrators often coming from the ranks of lawyers that defend corporations). As a result, it became almost impossible to succeed in these types of cases. However, the tide has finally turned.

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A rectangular logo with black letters reading "halunen law" accompanied by the tagline "Employment, Consumer, Whistleblower".Halunen Law, Lockridge Grindal Nauen P.L.L.P., and Levin Sedran & Berman, announced recently that plaintiffs they represented entered into an agreement to settle various class actions relating to IKO roofing shingles. The settlement applies to the “organic” asphalt shingles that were installed on buildings in the United States primarily between 1978 and 2008.

Read the recent press release about this settlement
(https://www.prnewswire.com/news-releases/iko-settles-class-action-lawsuit-regarding-organic-asphalt-shingles-300742840.html)

People who own or owned buildings with IKO organic shingles can obtain additional information about the settlement by checking the website at http://www.ikoorganicroofingshinglesclassactionsettlement.com

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