Flowers Foods Faces DOL Compliance Review

Flowers Foods, Inc. will face a compliance review by the U.S. Department of Labor concerning the company’s employment practices, including its classification of bakery products distributors as independent contractors. The Labor Department’s review follows a wave of class action lawsuits brought by distributors against Flowers Foods under the Fair Labor Standards Act for misclassifying them as independent contractors rather than employees.

This week, the Wall Street Journal reported that Flowers Foods, Inc. will face a compliance review by the U.S. Department of Labor concerning the company’s employment practices, including its classification of bakery products distributors as independent contractors. The Labor Department’s review follows a wave of class action lawsuits brought by distributors against Flowers Foods under the Fair Labor Standards Act for misclassifying them as independent contractors rather than employees.

Wanta Thome Jozwiak & Wanta, which commenced the first misclassification lawsuit against Flowers Foods in North Carolina in 2012, represents a class of bakery products distributors who are challenging their classification as independent contractors. The distributors argue the company improperly denied them overtime wages and other benefits owed to them as employees in violation of the federal Fair Labor Standards Act and comparable state laws. Flowers Foods is one of the leading producers and marketers of packaged bakery foods in the United States, hiring distributors from 31 states across the eastern and southern United States. Since Wanta Thome’s original filing, distributors in at least 19 states have brought similar misclassification lawsuits against the company.

The Labor Department’s scrutiny over misclassification practices has increased since July 2015, when the Department recommended companies reexamine their classification practices and consider reclassifying more of their independent contractors as employees. The Wall Street Journal reported that since that time, the Department has commenced two lawsuits against other businesses over FLSA misclassifications. In the matter of Flowers Foods, should the Department find the company misclassified its distributors, the company’s total liability could exceed $1 billion is lost wages, benefits, penalties, fines and other damages.   

The North Carolina lawsuit, Rehberg et al. v. Flowers Foods, Inc., et al., Court File No. 3:12-cv-00596, is scheduled for trial in October 2016.

The attorneys at Wanta Thome Jozwiak & Wanta have represented a wide range of workers in many states, recovering millions of dollars in class action lawsuits for employees who were misclassified as independent contractors. If you have questions about whether your employer has misclassified you or violated your rights, contact us for a free initial consultation.