On December 14, 2015, Judge Virginia M. Kendall ordered Town & Country Limousine, Inc. to compensate 34 of its drivers for back wages and an additional amount in liquidated damages, bringing the total to $381,432. Town & Country was found to have violated the overtime and recordkeeping requirements of the Fair Labor Standards Act (“FLSA”).
The problem arose from the Department of Labor’s finding that Town & Country had been incorrectly categorizing its drivers as exempt to the overtime requirements under the FLSA’s motor carrier exemption. Although some of Town & Country’s drivers would have been subject to that exemption in some instances, the DOL found that the majority of the drivers were entitled to overtime for the time worked beyond 40 hours in a single workweek.
The DOL found that Town & Country was failing to include time the drivers spent preparing their vehicles, waiting on customers and commuting to and from the company’s garage. This was compensable time that should have been included in the hourly calculation for the week. Further, the DOL further found that Town & Country was not recording and maintaining records as required by the FLSA.
Therefore, it is of the utmost importance to ensure your employees are properly classified for FLSA purposes and that proper records are kept.
For more information on the FLSA or any further employment related matters, please contact Dana Perminas, at 312-334-3474 or firstname.lastname@example.org.