Tempe, Arizona medical transport company to pay more than $33K in back wages to 38 drivers and dispatchers

Employers: Hope Medical Transportation

Sites: 2231 S. 48th Street, Suite 104, Tempe, Arizona, 85282

Investigation findings: Wage and Hour investigators established that Hope Medical Transportation, a non-emergency medical transportation company, did not pay overtime to workers paid on a salary basis when they worked more than 40 hours in a workweek. The employer failed to keep an accurate record of hours worked, and misclassified most of its drivers as independent contractors until January 2014.

Resolution: To resolve Hope Medical Transportation's violations of the Fair Labor Standards Act, the company has agreed to pay $33,434 in back wages due to 38 employees for minimum wage and overtime violations. The employer has also agreed to pay $2,926 in penalties.

Quote: "The resolution to this case will help us improve the working conditions of drivers in the Arizona non-emergency medical transportation industry," said Eric Murray, director of the Wage and Hour Division's district office in Phoenix. "We often find drivers working in this industry are not paid overtime when they work more than 40 hours in a week, and many are misclassified as independent contractors. The steps taken by Hope Medical Transportation will ensure that all its workers are paid in full compliance with federal wage laws going forward and other employers in this industry who may be paying their workers this way should take note, and take corrective action immediately."

Information: Simply paying an employee a salary does not necessarily mean the employee is not eligible for overtime. The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department's regulations.

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). Information also is available at http://www.dol.gov/whd/.