Plaintiffs Allege Misclassification Against Medicaid Broker Over Unpaid Wages

In a compelling legal battle, two small transportation companies have taken on a large Medicaid broker, alleging systemic misuse of power and breach of contract. On March 2, 2026, James Blazek and Robert Kendrick filed a class action complaint in the United States District Court for the Southern District of New York against Medical Answering Services, LLC (MAS). The plaintiffs claim that MAS has been exploiting its role as a Medicaid non-emergency medical transportation broker to misclassify drivers as independent contractors while exercising employer-level control over them. This misclassification allegedly denies these drivers minimum wage, overtime pay, and other protections under the Fair Labor Standards Act (FLSA) and New York Labor Law (NYLL).

The plaintiffs argue that MAS’s platform design inflates reassignment and refusal rates by not allowing providers to block specific time windows within a day. As a result, smaller providers like AOT Transportation Arrive On Time LLC and Absolute 1 Transport LLC are forced into impossible scheduling situations. These inflated metrics are then used by MAS to terminate contracts with smaller providers without proper notice or appeal process, redirecting business to larger companies. Blazek and Kendrick assert that this practice breaches MAS’s uniform transportation provider contracts and violates common-law duties.

Blazek and Kendrick are seeking collective-action treatment under the FLSA for similarly situated drivers who were misclassified as independent contractors. They also seek class-action treatment under NYLL for affected drivers and provider entities. The plaintiffs demand unpaid wages, overtime compensation, liquidated damages, statutory damages where applicable, attorneys’ fees, costs, pre- and post-judgment interest, compensatory damages for breach of contract, promissory estoppel damages including vehicle investment losses, and punitive damages for tortious interference with business relations.

Represented by Lee Jacobs & Associates LLC from Jersey City, New Jersey, the plaintiffs emphasize that MAS’s conduct has led to significant financial harm including loss of business value and profits. They accuse MAS of acting with malice by favoring larger providers at the expense of smaller ones like themselves. The case is presided over by judges from the Southern District of New York under Case ID 1:26-cv-01671.