OnTrac / LaserShip Driver Misclassification Investigation

Migliaccio & Rathod LLP is investigating whether OnTrac and LaserShip misclassified certain last-mile delivery drivers as independent contractors and failed to pay all wages or reimburse business expenses required by law.

OnTrac and LaserShip provide regional parcel delivery services for retailers and e-commerce companies throughout much of the United States. Many drivers reportedly use their own vehicles to deliver packages assigned through company dispatch systems or contracted service providers. The memorandum identifies OnTrac/LaserShip as a significant investigation target because drivers may perform work under detailed operational requirements while bearing substantial vehicle expenses and other business costs.

Although many drivers are classified as independent contractors or perform services through small business entities, the practical working relationship may resemble employment where the company controls delivery assignments, service standards, package handling, delivery windows, and performance expectations.

Reported Driver Responsibilities and Expenses

OnTrac and LaserShip drivers may have been required to:

  • report to designated terminals or distribution facilities;
  • load and scan assigned packages;
  • complete deliveries on assigned routes;
  • meet company delivery deadlines and service metrics;
  • photograph or electronically verify deliveries;
  • return undeliverable packages;
  • communicate with dispatch throughout the workday;
  • provide and maintain their own delivery vehicle;
  • pay fuel, insurance, maintenance, repairs, registration, and depreciation;
  • use personal smartphones and mobile data; and
  • perform loading, waiting, and administrative work without additional compensation.

Why Drivers Should Be Concerned

Simply calling a driver an independent contractor does not determine whether the worker is legally entitled to employee protections. Courts generally examine the realities of the relationship, including the degree of company control, whether drivers have meaningful entrepreneurial opportunities, and whether delivery services are central to the company’s business.

Drivers who personally perform deliveries while operating under detailed company standards may have been improperly classified.

In addition, loading packages, waiting for dispatch, returning undeliverable packages, resolving customer issues, and completing required administrative work may constitute compensable working time.

Potential Claims May Include

  • Independent-contractor misclassification
  • Unpaid overtime
  • Minimum-wage violations after business expenses
  • Unreimbursed mileage and vehicle expenses
  • Unpaid loading, waiting, and administrative work
  • Unpaid package-return time
  • Recordkeeping violations

We Are Interested in Hearing From Current and Former OnTrac or LaserShip Drivers Who:

  • delivered packages using their own vehicle;
  • were classified as independent contractors;
  • regularly worked more than 40 hours per week;
  • paid fuel, maintenance, insurance, or phone expenses;
  • spent unpaid time loading packages or waiting for assignments;
  • returned undeliverable packages without additional compensation;
  • worked under detailed company delivery requirements; or
  • believe they functioned as employees despite being classified as independent contractors.

You may have rights even if your agreement referred to you as an “independent contractor,” “delivery service provider,” “owner-operator,” or “independent courier.”

If you delivered packages for OnTrac or LaserShip and believe you were improperly classified or denied wages or reimbursements, please contact Migliaccio & Rathod LLP. There is no charge to speak with us, and there is no obligation to take legal action.

If you believe you encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call at (202) 470-3520.

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