Logistics company required to pay $575K to couriers at Shrewsbury location
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The John Joseph Moakley United States Courthouse (center) is the main courthouse for the U.S. District Court in Boston.
USPack Logistics LLC of Orlando, Florida, has been ordered by a Massachusetts District U.S. District Court judge to pay $575,000 to 62 couriers based out of the company’s Shrewsbury location for back wages and liquidated damages, according to a U.S. Department of Labor press release.
The consent judgment goes back to a January 2020 lawsuit filed against the company and COO Frank Powell after an investigation by the Department of Labor’s Wage and Hour Division of pay practices at the Shrewsbury location.
The Department of Labor alleged the company misclassified the workers as independent contractors and paid them per package, rather than hourly, left them responsible for paying for gas and vehicle maintenance, and did not compensate them for overtime.
According to the department, these practices left the workers making less than the federal minimum wage of $7.25 per hour. Massachusetts minimum wage is $14.25 per hour.
As part of the judgment, the company will continue to be reviewed by the labor department to ensure the company’s courier drivers are properly classified.
USPack offers a variety of logistics services throughout the country, including last-mile delivery, white-glove service, and cross-docking services.
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