Sales Coordinator Files Overtime Lawsuit Against Steam Logistics, Alleging FLSA Violations

In a significant development for workers in the logistics industry, a Sales Coordinator has filed an overtime lawsuit against Steam Logistics, LLC, alleging violations of the Fair Labor Standards Act (FLSA). The case, filed on December 19, 2024, in the Eastern District of Tennessee, could have far-reaching implications for how logistics companies classify and compensate their employees.

The plaintiff, whose primary duties involved selling and providing freight brokerage services, claims that Steam Logistics misclassified Sales Coordinators as exempt employees, denying them overtime pay for hours worked beyond 40 per week. The lawsuit seeks to recover unpaid overtime compensation, liquidated damages, and other relief not only for the plaintiff but also for other similarly situated Sales Coordinators and employees in comparable roles.

This case sheds light on a potentially widespread issue in the logistics industry, where misclassification of employees may be depriving workers of rightful overtime pay. Reena I. Desai, one of the attorneys representing the plaintiff, stated, "We believe that misclassification of employees is a common practice in the logistics industry. Employees who primarily perform non-exempt work like the Sales Coordinators included in this case should be paid overtime even if they are paid by salary."

The lawsuit, titled Shelton, et al. v. Steam Logistics, LLC (Case No. 1:24-cv-393), is being brought as a putative collective action under the FLSA. This legal strategy allows other affected employees to join the lawsuit, potentially expanding its scope and impact on the industry as a whole.

For workers in the logistics sector, this case underscores the importance of understanding employee classification and rights under labor laws. It also serves as a reminder to employers about the potential legal and financial consequences of misclassifying workers to avoid overtime pay obligations.

The outcome of this lawsuit could set a precedent for similar cases in the logistics industry and beyond. If successful, it may lead to increased scrutiny of employee classification practices and potentially result in significant changes to how companies in the sector manage their workforce and compensation structures.

As the case progresses, it will be closely watched by labor rights advocates, industry professionals, and legal experts. The resolution of this lawsuit could have lasting effects on employment practices in the logistics industry, potentially leading to improved compliance with labor laws and fairer compensation for workers who routinely work overtime hours.

The plaintiff is represented by attorneys from Nichols Kaster, PLLP, a firm with a track record in employee, consumer, and civil rights cases. Their involvement suggests the case may have merit and could lead to significant developments in labor law interpretation and enforcement in the logistics sector.