U.S. Department of Labor issued the following announcement on Jan. 15.
After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Rami Transportation Inc. – based in San Marcos, Texas – has paid $173,426 in back wages to 66 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).
WHD investigators found that the general freight trucking company incorrectly classified some of its drivers as independent contractors and paid them based on a percentage of their weekly hauling revenue regardless of the number of hours they worked. The company violated federal law when it failed to pay overtime when employees worked more than 40 hours in a workweek. WHD also cited the employer for recordkeeping violations.
“Truck drivers must be paid every dollar they earn,” said Wage and Hour Division District Director Nicole Sellers in Austin, Texas. “Other employers should use the resolution of this case as an opportunity to review their own pay practices to ensure they comply with the law. We encourage them to contact us for assistance in understanding their responsibilities so that they can avoid violations like those found in this case.”