U.S. Department of Labor Investigation Results in Arizona Transportation Company Paying $64,584 Due to 73 Employees

PHOENIX, AZ – Insearch Corp. – based in Tempe, Arizona – will pay $64,584 to 73 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found the transportation company violated minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Insearch Corp. required drivers to inspect vehicles each morning and at the end of the day, before and after their shifts, but failed to account and pay for that time accurately. The employer also made an illegal deduction that resulted in an employee’s pay falling below minimum wage. Additionally, the company inaccurately classified one employee as exempt from overtime requirements, resulting in additional violations when that employee worked more than 40 hours in a work week yet was not paid time-and-one-half for the additional hours. The employer’s failure to maintain accurate records of the number of hours worked by drivers and other employees resulted in recordkeeping violations.

“No employer should gain an economic advantage by paying workers below the wages that they have rightfully earned under applicable law,” said Wage and Hour Division District Director Eric Murray, in Phoenix. “We encourage all employers to review their employment obligations and we urge them use the many tools the Department offers to help them learn about their responsibilities, avoid violations, and to operate in compliance.”

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program.  Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.