Chandler medical transportation company to pay more than $121K in back wages to more than 50 drivers after US Labor Department investigation

Employer: Z-Best Medical Transportation, LLC

Site: 1505 N. Alma School Rd., Chandler, Arizona 85224

Investigation findings: An investigation conducted by the U.S. Department of Labor's Wage and Hour Division in Phoenix found that the owners of Z-Best incorrectly categorized medical transportation drivers as exempt from overtime, claiming an exemption that applies to taxi cabs. As a result, the company failed to pay overtime for hours worked beyond forty in a workweek, in violation of the Fair Labor Standards Act. The employer failed to pay drivers for time spent waiting for patients, and time spent waiting for assignments.

Resolution: The investigation determined that $121,866 in back wages is due to 54 employees. Upon receiving the results of the investigation, the employer changed its pay practices to comply immediately. As part of an agreement to resolve the case, the employer will host a community outreach event where Wage and Hour Division representatives will present information on Fair Labor Standards Act compliance.

Quote: "Employers are responsible for learning about the laws that apply to their businesses and implementing them. Not paying legally-required overtime hurts workers, their families and their communities. Medical transportation is not a taxi service, and is not able to claim the same overtime and wait time exemptions. Other employers in medical transportation should take note of this case and ensure they are in compliance with labor law," said Eric Murray, district director for the Wage and Hour office in Phoenix.

Information: For more information about federal wage laws administered by the Wage and Hour Division, call the agency's toll-free helpline at 866-4US-WAGE (487-9243), or the Phoenix office at 602-407-5346. Information is also available at http://www.dol.gov/whd.