U.S. Department of Labor Investigation Results in Louisiana-based Transportation Company Paying $25,032 in Back Wages to Employees at Mississippi Branch

JACKSON, MS – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Statewide Transport Inc. will pay $25,032 in back wages to 21 employees at its Jackson, Mississippi, terminal for violating overtime and recordkeeping requirements of the Fair Labor Standards Act (FLSA) and provisions of the Family and Medical Leave Act (FMLA).

WHD investigators determined Statewide Transport Inc. – based in Hammond, Louisiana – misapplied the FLSA's motor carrier exemption  and subsequently failed to pay drivers of smaller delivery vehicles overtime when they worked more than 40 hours in a workweek. The company also failed to maintain accurate payroll records, and failed to display an FLSA poster in the work area.

Investigators also found Statewide Transport Inc. failed to have a general or specific FMLA policy in place, as required.

"The misapplication of exemptions can lead to costly violations when employers are not fully aware of their responsibilities and the requirements of the law," said Wage and Hour Division District Director Audrey Hall, in Jackson. "The Wage and Hour Division stands ready to assist employers with any questions they have, and offers a wide range of compliance assistance tools to help explain their responsibilities. We encourage employers to reach out to us, confidentially, at any time for assistance."  

For more information about the FLSA, FLMA, and other laws enforced by the Wage and Hour Division, contact the 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 https://www.dol.gov/whd.