Flowers Foods Inc., the maker of Wonder Bread, agreed to settle an independent contractor misclassification lawsuit for $9 million, the company reported in a filing with the US Securities and Exchange Commission last week.
The company reported the settlement also “contains certain noneconomic terms that are intended to strengthen and enhance the independent contractor model, which remains in place.”
Flowers’ settlement in the class action suit must still receive approval from the court, and the independent contractor model will remain in place after the settlement, according to the Thomasville, Ga.-based company
In the suit, distributors claimed they were misclassified as independent contractors, worked more than 40 hours a week without overtime and that they were owed expenses.
Flowers reported the settlement is comprised of $5.2 million in settlement funds and $3.8 million in legal fees.
The lawsuit, Rehberg et al. v. Flowers Foods Inc. and Flowers Baking Co. of Jamestown LLC, was filed in 2012.
Flowers had also agreed to settle another independent contractor misclassification lawsuit on Jan. 6 against its Lepage Bakeries subsidiary for $1.25 million. The lawsuit was Bokanoski et al. v. Lepage Bakeries Park Street LLC and CK Sales Co. LLC.