This week, a federal court ordered a shuttle service to pay $742k in wages and damages in a class-action suit brought on by former workers of the Trans Express.
The judgement was handed down by the US District Court for the Eastern District of New York. The amount will be paid to compensate 368 shuttle drivers for overtime wages and damages.
During the case, the department's Wage and Hour Division investigation found that the Trans Express failed to pay overtime wages to employees who picked up and transported passengers for clients of the company.
Additionally, it was found that the company paid their drivers flat wages that ranged from $100 to $190 per day regardless of the number of hours they worked in a day or during the week. It was not uncommon for workers to spend 60 hours per week on the job.
In accordance with the Fair Labor Standards Act, companies must pay overtime to employees when more than 40 hours are worked in a week. The company will also be penalized for failing to keep adequate and accurate records as required by law.
Wage and Hour Division Director Jorge Alvarez commented on the case, saying, “Trans Express failed to pay hundreds of workers all of their hard-earned wages. The company shortchanged these employees and their families, and gained an unfair advantage over their law-abiding competitors. Now, Trans Express is being held accountable.”
In addition to paying the amount that was specified in damages, the company will also now be required to comply with overtime and record-keeping requirements.
Regional Solicitor of Labor Jeffrey Rogoff said, “The U.S. Department of Labor vigorously pursued legal action to ensure Trans Express’s employees were properly compensated as required by the law. The department will continue to pursue litigation where employers fail to comply with the FLSA’s minimum wage and overtime requirements.”
