An auto elements distributor and an Arizona-based supply supplier have been ordered to pay $5.6 million to 1,398 drivers misclassified as unbiased contractors, the Division of Labor mentioned in a Thursday information launch.
Joint employers Elements Authority and Diligent Supply Programs can pay $2.8 million in again wages and the identical quantity in liquidated damages, the discharge mentioned, after the Division of Labor obtained a consent judgment in federal court docket on Nov. 17. The judgment additionally requires the businesses and proprietor Larry Browne to pay $150,000 in civil cash penalties, and for Elements Authority to deal with supply drivers as workers.
The investigation and litigation spanned from April 20, 2012, to March 31, 2020. Misclassified workers had been denied minimal wage rights, additional time pay and different protections and advantages, Principal Deputy Wage and Hour Administrator Jessica Looman mentioned in a press release. The corporate additionally required workers to make use of private autos for deliveries with out compensation, the discharge added.
The drivers referenced within the case principally carried out light-duty and final mile supply runs, based on a Division of Labor spokesperson. The judgment requires among the drivers to be paid tens of hundreds of {dollars}. One driver is owed greater than $120,000 in again wages, liquidated damages and curiosity, based on the order.
Elements Authority is a nationwide distributor of automotive substitute elements, instruments, gear and transmissions. Diligent Supply makes use of a nationwide community of greater than 5,600 driver associates to finish hundreds of deliveries each day for numerous industries, based on its web site. Neither firm responded to a request for remark.
Transport Dive reporter Colin Campbell contributed to this report.