U.S. Department of Labor Investigation Results in Texas Trucking Company Paying $173,426 in Back Wages

AUSTIN, TX – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Rami Transportation Inc. – based in San Marcos, Texas – has paid $173,426 in back wages to 66 employees to resolve overtime violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that the general freight trucking company incorrectly classified some of its drivers as independent contractors and paid them based on a percentage of their weekly hauling revenue regardless of the number of hours they worked. The company violated federal law when it failed to pay overtime when employees worked more than 40 hours in a workweek. WHD also cited the employer for recordkeeping violations.

“Truck drivers must be paid every dollar they earn,” said Wage and Hour Division District Director Nicole Sellers in Austin, Texas. “Other employers should use the resolution of this case as an opportunity to review their own pay practices to ensure they comply with the law. We encourage them to contact us for assistance in understanding their responsibilities so that they can avoid violations like those found in this case.”

The department offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

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

The mission of WHD is to promote and achieve compliance with labor standards to protect and enhance the welfare of the nation's workforce. WHD enforces federal minimum wage, overtime pay, recordkeeping and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.