USPS Contractor Subject To FLSA, Judge Rules

Law360, New York (October 1, 2009, 2:37 PM EDT) -- A federal judge has refused to dismiss a proposed collective action accusing a U.S. Postal Service delivery contractor of misclassifying drivers and refusing to pay them overtime wages, finding that its service contract with USPS does not preclude it from liability under the Fair Labor Standards Act.

Judge Joan Humphrey Lefkow of the U.S. District Court for the Northern District of Illinois handed down an order denying defendant Eagle Express Lines Inc.'s motion to dismiss Tuesday.

Lead plaintiff Keith McDonald sued the delivery contractor on behalf...
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