Yerba Mate Class Action: Delivery Drivers Allege Wage Violations

In a brewing scandal, Yerba Mate has been hit with bitter allegations its underpays delivery drivers, doesn’t pay them on time, and doesn’t provide wage statements all required by law, a new lawsuit alleges.

The brewed tea company has been hit with the civil action filed by a former driver, who is seeking damages for himself and others also allegedly ripped off by the company, which sought to “maximize their profits while minimizing their labor costs,” the lawsuit alleges.

Yerba Mate Accused of Shaving Hours and Denying Overtime Pay

Connecticut resident  Danny Figueroa, who had worked for the company as a non-exempt delivery driver since 2002, filed the proposed class action lawsuit accusing Yerba Mate of failing to pay its employees for all overtime hours worked, shaving hours from employees’ pay, failing to pay employees on a weekly basis as required by the law, and failing to provide wage statements. 

Figureoa argues that the company knew it was required to pay workers overtime equal to one and one-half times their regular rates, yet they purposefully chose not to do so. They also were well aware of the other violations they committed, he alleges. When he brought those violations up and demanded the company take action, he claims they improperly retaliated against him.

Retaliation Claims Brew

According to the lawsuit, Figueroa routinely complained to Yerba Mate management about its failure to properly pay wages, and, less than 30 days after his last complaint, leaders accused him of assaulting a coworker during work at the company’s warehouse. 

The lawsuit says Figueroa “vigorously denied the assault” and asked Yerba Mate to conduct an investigation and to review the surveillance video of the time and place of the alleged assault, however they refused to do so and instead terminated his employment. The lawsuit claims the company didn’t follow their internal policy when they failed to investigate Figueroa’s defense.

“Defendant’s actions are clearly intended to retaliate against Mr. Figueroa for complaining about Defendant’s failure to pay proper wages to their employees,” the lawsuit alleges. “To date, Defendants have not paid [Figueroa] his duly earned wages.”

Yerba Mate Has Had Issues In The Past

This isn’t Yerba Mate’s first run-in with labor laws. In 2023, Bernard Payne, Jr., a company employee, filed a lawsuit against the tea brewer for allegedly failing to pay him overtime hours and saying he was ineligible for compensation under the law. Another employee, Casey Troyer, accused the company of failing to provide adequate meal and rest breaks in a 2021 lawsuit. 

In 2021, a judge certified a separate class action lawsuit filed by California delivery drivers which accused the company of shortchanging them by misclassifying them as outside salespersons, which would have made them exempt from overtime pay, Bloomberg Law reports.

Know Your Rights: Fair Labor Standards Act (FLSA) Protects Workers' Wages

As per the country’s Department of Labor, the Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and recordkeeping standards affecting employees in the private sector and in Federal, State, and local governments. The rules set include: 

• FLSA Minimum Wage of $7.25 per hour
  
  
• FLSA Overtime for nonexempt employees, who must receive overtime pay for hours worked over 40 per workweek
  
  
• Hours Worked governing how long an employee is required to be on the employer’s premises
  
  
• Recordkeeping requires employers to also keep employee time and pay records and display an official poster outlining the requirements of the FLSA.

In the Yerba Mate class action lawsuit, Figueroa wants to secure workers’ full payment of all unpaid overtime compensation and liquidated damages. He is accusing Yerba Mate of violations of the FLSA, as well as state labor laws.

Case Details

• Lawsuit: Figueroa v. The Yerba Mate Co. LLC
• Case Number: 1:24-cv-04003-RPK-TAM
• Court: U.S. District Court for the Eastern District of New York

Plaintiffs' Attorneys

• Amit Kumar (Law Offices of William Cafaro)