A fierce legal battle over unpaid overtime wages is headed to mediation, as Lazer Spot Inc., a major logistics provider specializing in trailer spotting, faces a collective action from over 650 current and former drivers who claim the company misclassified them to dodge overtime pay, according to a new Georgia federal court filing.
On Thursday, U.S. District Judge Mark H. Cohen put the lawsuit on hold to give the parties a shot at settling the dispute through mediation, set for November. The lawsuit centers on claims that Lazer Spot misapplied the Motor Carrier Act (MCA) exemption under the Fair Labor Standards Act (FLSA), denying workers time-and-a-half pay for hours worked beyond 40 each week.
“Straight-Time All the Time”: Workers Cry Foul
Lead plaintiff James Strickland, a former yard spotter for Lazer Spot, filed suit in May 2022, arguing the company paid him straight time for all hours worked, regardless of overtime. Yard spotters, who move freight trailers around company lots but don’t drive on public roads, were classified as exempt under the MCA—an exemption that applies only to workers regulated by the Department of Transportation.
According to Strickland, this classification was incorrect, and thus Lazer Spot violated federal wage laws. After launching the suit, he said Lazer Spot quietly began reclassifying some yard spotters and started paying them proper overtime.