In a significant legal move, a class action lawsuit has been filed against two major corporations over alleged labor law violations. On November 15, 2024, Sean Cole lodged a complaint in the United States District Court for the Northern District of Illinois against Campbell Soup Company and Snyder’s-Lance, Inc., accusing them of misclassifying employees as independent contractors.
The lawsuit centers around the accusation that Campbell Soup Company and its subsidiary Snyder’s-Lance have systematically misclassified their delivery drivers as "independent contractors" rather than employees. This classification allegedly allows the companies to avoid providing benefits such as minimum wage, overtime pay, and reimbursement for business expenses. The plaintiff argues that this practice violates several laws, including the Fair Labor Standards Act (FLSA), the Illinois Minimum Wage Law (IMWL), the Illinois Employee Classification Act (IECA), and the Illinois Wage Payment and Collection Act (IWPCA).
According to the complaint, Campbell Snacks—a division within Campbell Soup Company—employs these drivers under what they call Distributor Agreements. These agreements supposedly allow drivers to operate independently by purchasing sales territories where they can sell and distribute snack products. However, Cole contends that this is misleading because Campbell retains control over critical aspects of their work. For instance, distributors are required to deliver products on consignment with non-negotiable commission rates set by Campbell Snacks. Furthermore, they must adhere to specific routes and schedules dictated by the company.
Cole's lawsuit also highlights how this misclassification harms not only employees but also state and federal governments due to lost tax revenue and unemployment insurance contributions. Additionally, it gives Campbell an unfair competitive advantage over companies that comply with employment laws.
The plaintiffs seek class certification for all similarly affected individuals who worked under similar conditions in Illinois within three years prior to filing this suit. They demand compensation for unpaid wages, including overtime pay under both federal and state laws. The lawsuit also seeks liquidated damages equivalent to unpaid wages under FLSA provisions.
Representing Sean Cole are attorneys Nickolas J. Hagman from Cafferty Clobes Meriwether & Sprengel LLP based in Chicago, along with Craig M. Nicholas from Nicholas & Tomasevic LLP located in San Diego. The case is being overseen by judges at the United States District Court for the Northern District of Illinois under Case ID 1:24-cv-11784.