Limo Drivers Settle for $750K Over Misclassification as Contractors, Not Employees

A limousine company dispute in Connecticut has resulted in a $750,000 settlement for 23 current and former drivers.

The Connecticut Law Tribune reports that drivers for Connecticut Limousine recently agreed to settle their lawsuit over allegations the New Haven-based company illegally withheld wages by misclassifying the drivers as independent contractors, instead of employees.

A lawyer for Connecticut Limousine said the company would have no comment on the settlement.

The company had filed court papers denying allegations of unjust enrichment and illegally withholding wages.

A lawyer for the drivers, Michael Petela Jr., said the company improperly shifted many business expenses onto the drivers, who had to pay $463 a month for insurance and other costs. He says few drivers earned more than $60,000 a year and some actually lost money.