DOL orders RM International to pay $376,000 in back wages
Portland-based freight broker R.M. International was recently ordered to pay 177 employees back wages totaling $376,380. The U.S. Department of Labor investigated the company and found its payroll policies were in violation of the Fair Labor Standards Act (FLSA) overtime provisions.
Specifically, the employers was routinely misclassifying drivers under an exemption for which they did not qualify. To be considered for an exemption through the FLSA's Motor Carrier Act, employees must meet certain criteria regarding their primary job duties. Since R.M. International's employees were not regularly charged with loading carriers or transporting people and goods for interstate commerce, they were guaranteed rights to premium pay (time-and-a-half the regular rate) if they worked more than 40 hours in a week.
"An employer cannot avoid its overtime obligations by incorrectly classifying drivers as being involved in interstate commerce," said Ruben Rosalez, acting administrator for the Wage and Hour Division's San Francisco regional office. "The Wage and Hour Division will use every enforcement tool available, including litigation, to level the playing field and ensure that employees are properly paid."
Employers can take precautions, such as investing in a timeclock or using a payroll processing service to ensure they remain in compliance with the FLSA.
Specifically, the employers was routinely misclassifying drivers under an exemption for which they did not qualify. To be considered for an exemption through the FLSA's Motor Carrier Act, employees must meet certain criteria regarding their primary job duties. Since R.M. International's employees were not regularly charged with loading carriers or transporting people and goods for interstate commerce, they were guaranteed rights to premium pay (time-and-a-half the regular rate) if they worked more than 40 hours in a week.
"An employer cannot avoid its overtime obligations by incorrectly classifying drivers as being involved in interstate commerce," said Ruben Rosalez, acting administrator for the Wage and Hour Division's San Francisco regional office. "The Wage and Hour Division will use every enforcement tool available, including litigation, to level the playing field and ensure that employees are properly paid."
Employers can take precautions, such as investing in a timeclock or using a payroll processing service to ensure they remain in compliance with the FLSA.
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