Alabama fleet to pay drivers $113,000 in back wages for driver misclassification, overtime denial

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Updated Aug 21, 2015

time cardsAn Alabama trucking company has been ordered to pay $113,000 in back wages and damages following an investigation by the Labor Department.

Investigators from the department’s Wage and Hour Division found that Fitzhugh Contracting, a logging and trucking contractor out of Gallion, Ala., violated the overtime and record-keeping provisions of the Fair Labor Standards Act. Fitzhugh was found to have paid 63 workers straight time for all hours worked, when the FLSA requires overtime payment of time and a half the employee’s rate of pay for all hours worked beyond 40 in a workweek.

The company was also found to have misclassified 46 driver employees as independent contractors, denying them some wages and benefits. The Labor Department said Fitzhugh didn’t maintain accurate records of all hours worked.

To resolve the issue, Fitzhugh agreed to future compliance with the FLSA and to pay 63 employees $56,367 in back wages, plus an equal amount in liquidated damages for a total of $112,735.