This month we bring you the latest news on employment and payroll law for January 2023. Get caught up on the most recent changes in legislation, as well as updates on cases and law developments that could impact your business.
Arizona Auto Parts & Logistics Company to Pay $5.6M to 1,398 Misclassified Drivers
After the U.S. Department of Labor and U.S. District Court for the District of Arizona uncovered that a nationwide auto parts distributor and an Arizona logistics firm misclassified 1,398 drivers as independent contractors, they will be required to pay $5.6 million in back wages and liquidated damages through a federal court’s consent judgment. Also, Parts Authority, Diligent Delivery Systems and its owner Larry Browne were all required to pay a civil money penalty of $150,000 as part of the consent judgment.
Solicitor of Labor Seema Nanda said: “Employers cannot avoid their obligations to pay the minimum wage and overtime through contracting with another entity to obtain employees… 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.”
Read the full story on the US Department of Labor Newsroom.
Florida Healthcare Benefits Firm Paying $106K in Back Wages & Damages for Misclassification
An investigation by U.S. Department of Labor Wage and Hour Division investigators found Senior Healthcare Advisors LLC misclassified its employees as independent contractors and paid them straight-time rates for all hours worked, including hours over 40 in a workweek, thus violating the requirements of the Fair Labor Standards Act. The employer neglected to notify its employees of their rights under the Family and Medical Leave Act. As a result, the back wages and liquidated damages recovered are $106,248 for 68 workers.
Read the full story on the US Department of Labor Newsroom.
$15.5M Class Action Settlement Agreed to by T-Force for Misclassification
T-Force agreed to pay a financial settlement of $15.5 million in response to the claims that they misclassified truck drivers as independent contractors instead of employees, thus denying them rights like minimum wage and overtime. The class action lawsuit argued that T-Force violated California law by failing to recognize these drivers as employees, which meant workers did not receive the rest periods and expense reimbursement benefits among other forms of compensation they would have been entitled to as employees.
Read the full story on Top Class Actions here.
