In the case of Midgett v. Werner Enterprises, Inc., Christopher Midgett filed a lawsuit against Werner Enterprises (Werner) for allegedly improperly classifying him and other truck drivers as independent contractors instead of employees. Midgett claimed that Werner failed to pay them minimum and overtime wages, which violated the Fair Labor Standards Act (FLSA) and the Nebraska Wage Payment and Hour Act (NWHA).
This lawsuit consisted of drivers classified as independent contractors who transported Werner’s truckload shipments between specific dates using trucks purchased from Werner or other sources. Werner filed a motion to dismiss the NWHA claim. They argued that Midgett lacked standing to assert the claim because he was a Georgia resident and did not state that he worked in Nebraska. Werner contended that the NWHA did not apply to non-residents who did not work in Nebraska.
In response, Midgett submitted evidence, which included deposition testimony, the Werner owner-operator agreement, and settlement statements, showing that he made trips in Nebraska and that Werner’s headquarters, senior management, and data servers were located in Nebraska.
The court considered the evidence and found that Midgett had standing to prosecute the Nebraska law claim. The court also noted that Midgett had worked in Nebraska, had a contract governed by Nebraska law, and had a business relationship with Werner based in Nebraska. The court concluded that Midgett’s connection to Nebraska was sufficient to establish standing and denied Werner’s motion to dismiss.
Key lessons from this case:
- Even though employees may reside elsewhere, they are subjected to the laws of the state in which their employment contract is based.
- Improper classification of employees can lead to lawsuits of overtime back wage claims.
- If the complainant (employee in this case) presents a valid argument for their claims, motions to dismiss an overtime lawsuit are not applicable.
If you want to know more about overtime regulations, read our guide on Nebraska Overtime Laws.
