A-1 Quality Logistical Solutions; LLC, William Foster, III; East Logistics, LLC; Eastern Labor, LLC; Empire Labor Services, LLC

NLRB-Retaliation Settlement for Former Warehouse Employee - Posted July 11, 2024

On April 26, 2023, Tiris Coates, a former employee of A-1 Quality Logistical Solutions, LLC, and Empire Labor Services, was terminated from his position. He was fired  shortly after he had joined the class action lawsuit London, et al., v. A-1 Quality Logistical Solutions, LLC, et al. (“the lawsuit”). In response to Mr. Coates’ termination, Getman, Sweeney & Dunn promptly filed a complaint with the National Labor Relations Board (NLRB) on April 28, 2023, alleging that his dismissal constituted unlawful retaliation for Mr. Coates’ concerted protected activity under the National Labor Relations Act.

Following an investigation, the NLRB issued a Complaint and Notice of Hearing. A few days before the trial date of June 10, 2024, the NLRB and the Respondents entered into a settlement agreement. Click here to view the final settlement agreement.

As part of the settlement agreement, Mr. Coates received compensation in the form of full back pay, and Respondents agreed to undertake several actions to address the consequences of Mr. Coates’ termination and to educate other workers about their rights, which will prevent similar incidents in the future. Specifically, they committed to:

• Posting a notice within its facilities acknowledging the settlement and affirming its commitment to compliance with the NLRA.
• Mailing a notice to current and former employees who worked at the facility located at 300 NY-281, Tully, NY 13159 at any time from July 1, 2022 to April 30, 2023  informing them of the settlement and their rights under the NLRA.
• Issuing a formal letter of apology to Mr. Coates, acknowledging any harm caused by his termination and expressing regret for any negative impact on his career.
• Providing Mr. Coates with a neutral employment reference upon request, ensuring that his future job prospects are not adversely affected by his termination from A-1 Quality Logistical Solutions, LLC, and Empire Labor Services.

The settlement agreement represents a resolution of the NLRB dispute between Mr. Coates and A-1 Quality Logistical Solutions, LLC, and Empire Labor Services, and underscores the importance of protecting employees’ rights against retaliation. It does not resolve the claims in the underlying class action lawsuit in London, et al., v. A-1 Quality Logistical Solutions, LLC, et al, which is still pending.

Case Update - Posted May 11, 2023

To date, over 100 A-1 warehouse workers, including order selectors and lumpers, have joined the case by filing a Consent to Sue!

Last week we filed a motion with the Court and asked the Court to conditionally certify the case on behalf of A-1 warehouse workers. Then, in an attempt to prevent workers from litigating on a group basis in Federal Court, earlier this week A-1 filed a motion to compel arbitration. Richard Mursinna offered a declaration in support of A-1’s motion. You can read what he says here. We will oppose A-1’s motion to compel arbitration. The Court’s ruling regarding these motions will dictate whether the case moves forward as a collective action in Federal Court, or the warehouse workers must proceed with individual cases in arbitration.

Case Update - Posted March 16, 2023

On March 10 we filed an amended complaint and asserted additional state class action claims in Colorado and Missouri for individuals who worked in those states. Click here to read the amended complaint.

The participation in this case has been impressive. To date, approximately 90 people have filed a Consent to Sue and joined the case.

Answers to Common Questions

Which employees can be part of this lawsuit?

All current or former warehouse workers who were employed by A-1, at any time from February 2020 to the present, were classified as independent contractors, worked more than 40 hours in a week, did not receive compensation at the rate of time and one-half for all hours worked over 40 in a workweek or suffered deductions from their pay, can ask to join this case by filling out and signing a Consent to Sue Form and returning it to Getman, Sweeney & Dunn, PLLC. Positions within the class include lumpers and order selectors.

What claims are covered in this case?

The lawsuit covers claims for unpaid overtime wages under the federal Fair Labor Standards Act (“FLSA”). Additionally, it is claimed that A-1 violated New York Labor Law because it 1) failed to pay its lumpers overtime wages for hours worked over 40 in a workweek; 2) the pay statements A-1 provided to lumpers didn’t include the accurate number of hours worked or pay earned; and 3) failed to provide their lumpers a notice at the time of hiring that included the regular rate of pay and the overtime rate of pay.

What damages are sought?

Damages sought under the FLSA include back overtime pay, an equal amount of liquidated damages, attorneys’ fees, and any costs of litigating the case. Damages sought under the New York Labor law include back overtime wages, an equal amount of liquidated damages, prejudgment interest at the rate of 9%, up to $5,000 in damages for the pay statement violations, up to $5,000 for failure to provide written notice of the wage rates at the time of hire, and attorneys’ fees and costs.

How far back can claims be made?

Generally, under the FLSA, you are entitled to make claims for the A1 extending back three years from the date your Consent to Sue Form is filed with the Court. A1 will be entitled to argue that its violations were not willful and that its claims should be limited to only a two-year period preceding the filing of your Consent to Sue. Claims under the New York Labor Law go back 6 years from the filing of the Complaint.

How do I join the case?

To bring claims under the FLSA for back overtime wages and an equal amount of liquidated damages in this action, you must affirmatively join the case. To request to join this federal case, you must fill out and sign a Consent to Sue form (click here to sign it electronically) or print it out and return it to Getman, Sweeney & Dunn, PLLC by fax, email or mail.

You need the free Acrobat Reader installed to view the form.

Can I wait to file my Consent to Sue form?

You are not part of the FLSA case until your Consent to Sue Form is filed. If you delay in filing the Consent to Sue Form, part or all of your claim may be barred by the statute of limitations.

Do I have to pay to join the case?

No. The attorneys are handling this case on a contingent basis and will only be paid if Plaintiffs recover through a settlement or final judgment. Under the FLSA and New York Labor Law, if Plaintiffs recover back wages, A-1 must pay the Plaintiffs’ costs and attorneys’ fees.

Can A1 fire me or take action against me for joining the case?

The law prohibits retaliation for joining an overtime lawsuit. If any employee suffers retaliation, A-1 would be liable for additional monetary damages. Notify us immediately if you hear of any threats of retaliation or if you think any retaliation occurred. Retaliation is extremely rare in overtime cases because an employer can suffer such serious penalties.

Do I have to litigate in arbitration and not federal court?

A-1 may have required some warehouse workers to sign an arbitration agreement. While arbitration agreements are generally enforceable, there are exceptions. For example, arbitration agreements are not enforceable under the Federal Arbitration Act for any “class of workers engaged in foreign or interstate commerce.” 9 U.S.C. § 1. This past June the U.S. Supreme Court interpreted this provision as to airline ramp supervisors who worked for Southwest Airlines, and loaded and unloaded baggage and other cargo on and off airplanes that traveled across state lines. The U.S. Supreme Court held that the supervisors were engaged in foreign or interstate commerce, and thus belonged to a class of workers who were exempt from the Federal Arbitration Act. Southwest Airlines Co. v. Saxon, 142 S.Ct. 1783 (2022).

We believe that, like the airline ramp supervisors, A-1’s warehouse workers were engaged in foreign or interstate commerce, and they belong to a class of workers who were exempt from the Federal Arbitration Act. The warehouse workers handle A-1’s customers’ merchandise, which arrives at the warehouses from out-of-state or overseas, and at some later point the merchandise is then loaded onto trucks and shipped within the state and across state lines. As a result, we believe that any arbitration agreement is not enforceable. If a court disagrees, and any appeals are exhausted, then workers would have to bring their claims in arbitration.