CAUTIONARY TALE EPISODE 62Department of Labor $5.6 Million Judgment for Drivers Miscast as Independent Contractors « Law Offices of Timothy Bowles

FEDS FED UP WITH
TRUCKER MISCLASSIFICATION

California is notorious for penalizing improper classification of employees as independents. Not to be outdone, the federal Department of Labor is also cracking down on employers who similarly miscast workers.

Case in point is the “consent judgment”, i.e., court-filed settlement agreement, establishing that auto parts distributor Parts Authority Arizona LLC and joint employer Arizona Logistics Inc. misclassified 1,398 truck drivers as independent contractors with $2.8M back wages and another $2.8M in penalties now owing.

The misclassification resulted in not paying minimum wage or overtime and no reimbursement to drivers for use of personal vehicles, all in violation of the Fair Labor Standards Act.

Solicitor of Labor Seema Nanda stated: “The U.S. Department of Labor will combat misclassification schemes and wage theft through pursuing all the employers that are responsible for depriving employees of their rights under the Fair Labor Standards Act.”

TAKE-AWAYS: Correct classification of workers is a crucial part of avoiding attacks from government agencies and workers themselves. Where truck drivers are concerned, there are also many other state and federal regulations and court decisions impacting pay, other employment requirements, and how to keep the drivers and our highways safe. Consulting with an experienced employment attorney can help employers avoid attacks.

Our attorneys Tim Bowles, Cindy Bamforth or Helena Kobrin can assist employers with proper classification of employees and other legal requirements.

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If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.

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