On June 27, 2025, Maryland federal judge J. Mark Coulson denied Perdue Foods' motion to dismiss the claims of seven growers who accused the poultry company of violating the Fair Labor Standards Act (the "FLSA") by depriving workers of minimum and overtime wages.
What Is the Fair Labor Standards Act (FLSA)?
The FLSA, which distinguishes nonexempt employees from independent contractors, establishes minimum wage, overtime pay, recordkeeping, and other employment standards affecting employees in the private sector as well as in Federal, State, and local governments. Such standards require covered employers to pay nonexempt employees at least the federal minimum wage for all hours worked and to maintain certain records regarding employees. Moreover, the FLSA prohibits retaliation against employees who file complaints. The FLSA does not, however, provide those same protections to independent contractors, who are not economically, managerially, or materially dependent on an employer for work product.
Background on the Perdue Foods Misclassification Case
Since 2022, Perdue Foods LLC ("Perdue") has faced a class and collective action claims –initially brought in Georgia federal court, with similar claims later brought in Maryland federal court – alleging that the company had violated state and federal labor laws with policies that put an undue burden on farmers who raise broiler chickens nationwide and improperly classified them along the way. The Complaint alleges that growers were recruited by the company with promises of independence and financial success, but instead, Perdue exercised extensive control over the growers, treating them as "controlled employees under both federal and [state] law," while denying them appropriate pay, benefits and reimbursements. The lawsuit further alleges that growers took on large expenses necessary to build barns and grow poultry according to Perdue's specifications, while receiving none of the benefits or wages afforded to employees.
Nonexempt employees and independent contractors are viewed differently under the law, independent contractors do not maintain legal rights to minimum wage, overtime pay, unemployment benefits, or workers' compensation in the case of injury, as they are assumed to have a degree of independence and control over their own work under the law. As such, improper classification of workers can result in underpayment or lack of benefits that the misclassified workers may have otherwise been entitled to, as the farmers allege in this action.
Conditional Certification and Motion to Dismiss
In November 2024, Judge Coulson conditionally certified a class of individuals who were (i) classified as independent contractors by Perdue and (ii) who grew chickens under a Poultry Product Agreement for Perdue from April 4, 2021 to the present. Approximately 80 individuals joined the collective.
In February, seven opt-in plaintiffs filed consents to join to which Perdue responded with a motion to dismiss in May alleging that these seven plaintiffs did not work for the company during the relevant period and/or brought their claims too late, as the FLSA generally comes with a two-to-three-year statute of limitations.
The Court denied Perdue's motion as Judge Coulson noted that "dates of service [can] be 'subjected to scrutiny through deposition testimony, interrogatories or cross-examination' as plaintiffs advocate for," and therefore "dismissal [of the seven opt-in plaintiffs] is premature at this time and inconsistent with Fourth Circuit precedent." Judge Coulson further cautioned district courts to exercise restraint in "dismissing cases on procedural bases, rather than deciding them on the merits."
Broader Implications of Worker Misclassification
If an employer is found to have misclassified one or many of its workers, it's possible, as seen in Perdue, that they may face legal complications. Furthermore, the employer may be held liable for financial penalties, such as repayment of back wages and penalties for failing to withhold and remit state and federal payroll taxes.
As the Perdue case progresses into discovery, the Court will seek to resolve precisely the questions around whether the farmers were in fact legally misclassified, and in the case that they were, what elements of the FLSA's remedial purpose they are entitled to.
This case reflects broader concerns about worker misclassification—particularly in industries that rely on independent contractors—an issue Miller Shah LLP monitors through its employment, wage and hour, and misclassification litigation work. Our attorneys at Miller Shah LLP have extensive experience representing employees in lawsuits concerning misclassification, violations of the FLSA and similar federal and state employment laws, and employer compliance. We offer comprehensive legal support to help navigate worker misclassification whether you are an employer or a worker. Contact us today for a consultation.
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