1,398 Arizona Delivery Driver Parts Authority Wins $5.6 Million Judgment Over Job Misclassification
If you enjoy shopping at Parts Agency, maybe consider finding another place to spend your money. The Department of Labor recently announced that it has received a judgment ordering the Arizona Parts Agency and Arizona Logistics (which operates together as the Diligence Delivery System) to return wages and damages. after they misclassified 1,398 drivers as independent contractor.
In addition to the $2.8 million in restitution, the court order also ordered the companies to pay an additional $2.8 million in punitive damages to employees deemed contractors. Additionally, Larry Browne, owner of the Diligent Distribution System and Divisions Authority, was ordered to pay a $150,000 fine. In the future, the Parts Authority will also be required to treat its delivery drivers like employees.
“Employers cannot evade their obligations to pay the minimum wage and work overtime through contracting with another entity to acquire employees,” said Labor Attorney Seema Nanda in one state.mind. “The U.S. Department of Labor will combat wage theft and misclassification schemes by prosecuting all employers responsible for disembarking workers under the Public Labor Standards Act. is equal to.”
The Department of Labor’s Wages and Hours Division simply found that these delivery drivers were being treated as independent contractors. It also found that the Divisional Regulator “did not meet the minimum wage requirements, pay a straight-time rate for all hours worked, fail to pay one-and-a-half hours above 40 hours in a workweek and no required timekeeping records. The company also requires employees to use their personal vehicles for delivery without compensation.”
Yes, that’s not good. The Fair Labor Standards Act exists for a reason, and telling employees they’re independent contractors when they’re not is a magical money-saver loophole for things like minimum wage and federal laws. overtime. Thankfully, at least in this particular case, the Divisional Regulator will have to face some practical consequences.
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“Parts Authority, Diligent Delivery Systems and Larry Browne misclassified nearly 1,400 delivery drivers as independent contractors, denying them of their rights to minimum wage, overtime pay and other benefits and protections,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “We will continue to identify and address misclassification that not only hurts the workers who are deprived of their wages, but also puts responsible employers at a competitive disadvantage.”
If you believe you or someone you know may be owed back wages, the Department of Labor have a search engine can help you figure out what you are owed. It also offers a downloadable app to track your hours. And if you’re an employer, just pay your employees what they owe. Even if you manage to get away with stealing paychecks, it’s nothing to be proud of. It just makes you a shitty person.
