Litigation Note: Crowell & Moring Secures Victory for TXX Services

Washington, D.C. - October 6, 2015: TXX Services, Inc. prevailed in a collective action/class action complaint filed against the company by two owner/operator representatives.

TXX Services, Inc., a transportation broker of property, contracts on an independent contractor basis with independent owner/operator business entities to perform transportation services accomplishing its customers' last-mile transportation needs, particularly pharmaceutical deliveries. Two owner/operator representatives filed a collective action/class action complaint under the Fair Labor Standards Act (FLSA) and the New York Labor Law (Labor Law), on behalf of themselves and hundreds of other individuals, alleging that they were misclassified as independent contractors and that, as employees, they were entitled to damages for alleged unpaid overtime compensation, liquidated damages, costs, and attorneys' fees.

Crowell & Moring filed a summary judgment motion which demonstrated that the plaintiffs were not employees, and were not covered by the FLSA or the Labor Law. Crowell & Moring achieved the same finding for TXX Services, Inc. in a six-day hearing before a New York State Department of Labor Administrative Law Judge under the New York State Unemployment Insurance Law, with opposing counsel representing the claimant, one of the putative class members. In so doing, Crowell & Moring simultaneously ensured a full and accurate record and obtained crucial admissions from a potential plaintiff.