Waste Management Settles Unpaid Overtime Suit for $7M

Dedham, MA: A Massachusetts State Court today approved a $7 Million settlement of a class action lawsuit filed against Waste Management of Massachusetts, Inc. by the company's garbage truck drivers over prevailing wage violations and unpaid overtime. The litigation has taken nearly five years.

In the case of Michael Mullally, et al. v. Waste Management of Massachusetts, Inc., 452 Mass. 526 (2008), Waste Management's Massachusetts drivers alleged that the company manipulated its prevailing wage payroll records in order to deny them their correct overtime pay.

The Massachusetts Supreme Judicial Court ruled in 2008 that the company used an illegal payroll formula to determine the hourly rate it used to calculate overtime pay and ordered the company to pay for an independent audit of its payroll records. After an extensive audit review, the parties held a mediation session in late 2009, which resulted in the $7 Million agreement that was finally approved today. Under the agreement, more than 1,200 of Waste Management's Massachusetts drivers will receive on average more than 200% of what they were lawfully owed in overtime pay dating back to May 2003.

Most drivers will receive checks for more than double what they should have been paid in the first place. Some drivers will receive as much as $60,000.00 in back pay. I couldn't be happier for all the hard working men and women who are finally going to get paid.