In a significant legal development for the logistics industry, a Sales Coordinator has filed an overtime lawsuit against Steam Logistics, LLC, alleging that the company misclassified employees as exempt from overtime pay. The case, filed on December 19, 2024, in the Eastern District of Tennessee, seeks to represent not only the named plaintiff but also other similarly situated Sales Coordinators and employees performing comparable duties.
The complaint asserts that Steam Logistics required Sales Coordinators to work overtime to complete their tasks but incorrectly classified them as exempt employees, thereby denying them overtime compensation for hours worked beyond 40 per week. This practice, if proven true, would be in violation of the federal Fair Labor Standards Act (FLSA).
According to the lawsuit, the primary job duties of Sales Coordinators involved non-exempt work, including selling and providing freight brokerage services. The plaintiff argues that despite being paid a salary, the nature of their work should qualify them for overtime pay under FLSA regulations.
Reena I. Desai, one of the attorneys representing the plaintiff, stated, ‘We believe that misclassification of employees is a common practice in the logistics industry. Employees who primarily perform non-exempt work like the Sales Coordinators included in this case should be paid overtime even if they are paid by salary. We hope to help them recover the pay that has been withheld from them.’
The case, titled Shelton, et al. v. Steam Logistics, LLC (Case No. 1:24-cv-393), seeks to recover unpaid overtime compensation, liquidated (double) damages, and other statutorily-permitted relief for the plaintiff and other affected employees. This collective action under the FLSA could have far-reaching implications for the logistics industry, potentially forcing companies to reevaluate their employee classification practices.
The lawsuit highlights a broader issue in the American workforce regarding the classification of employees as exempt or non-exempt. Misclassification can lead to significant underpayment of wages, particularly for overtime hours, which can have a substantial impact on workers’ livelihoods. If successful, this case could set a precedent for similar claims in the logistics sector and beyond.
The legal action is being pursued by Nichols Kaster, PLLP, a firm with offices in Minneapolis, Minnesota, and San Francisco, California. The firm, which specializes in employee, consumer, and civil rights cases, has recently received recognition on the 2025 Best Law Firms List for Litigation-Labor and Employment in Minneapolis.
As the case progresses, it will be closely watched by industry observers and labor rights advocates. The outcome could potentially lead to changes in how logistics companies classify and compensate their employees, particularly those in sales and coordination roles. It may also prompt other workers in similar positions to examine their own employment status and compensation structures.
For workers in the logistics industry, particularly those in roles similar to Sales Coordinators, this case underscores the importance of understanding their rights under labor laws. It also serves as a reminder for employers to carefully review their classification practices to ensure compliance with federal and state labor regulations.
Additional information about the case and how Sales Coordinators can make a claim is available at www.nka.com. As the lawsuit moves forward, it will likely shed more light on employment practices in the logistics industry and could potentially lead to significant changes in how companies structure their workforce and compensation policies.
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