Matco Misclassification Lawsuit Resolved with $15.8M Settlement
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John Fleming, a former Matco franchisee distributor filed a California misclassification suit alleging numerous labor law violations.
The Case: Fleming v. Matco Tools Corp.
The Court: U.S. District Court Northern District of California
The Case No.: 19-cv-00463-WHO
The Plaintiff: Fleming v. Matco Tools Corp.
The plaintiff in the case, John Fleming, filed suit in 2021 and moved for class certification on his wage and hour claims alleging that during his time employed by Matco Tools Corp. he worked roughly 20 hours of overtime per week. Fleming described the agreement that required franchise operators to pay an initial fee to Matco, only distribute Matco-approved brand tools using the Matco system, attend Matco's training program for new distributors (including sixty hours of classroom training plus eighty hours of field training)*, lease or purchase a Matco Truck with the company’s branding, make the vehicle available for required company inspections, wear Matco branded uniforms; and refrain from operating the “Matco” truck outside of the company-identified territory. Despite the described conditions that appear to amount to tight company control, Fleming and other distributors were classified as independent contractors, leaving them ineligible for overtime pay and other benefits and protections afforded to non-exempt employees.
*They were required to pay for travel and hotel costs associated with the training.
The Defendant: Fleming v. Matco Tools Corp.
The defendant, Matco Tools Corp., is a manufacturing and distribution company for professional quality mechanic's tools and service equipment. The brand’s products are distributed primarily by authorized franchisee distributors, who enter into a Matco Distributorship Agreement ("DA"). Matco classifies its franchise distributors as independent contractors.
The Case: Fleming v. Matco Tools Corp.
The United States District Judge, William H. Orrick, granted Fleming's motion for class certification on the issues of misclassification and reimbursement claims, wage statement, and UCL (in regards to the wage statement claim). Judge Orrick denied the motion for class certification with respect to the overtime, meal and rest breaks, waiting time, and wage deduction claims.
If you have questions about California employment law or need help filing a California employment law complaint, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.
