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Trucking Companies Settle Wage and Hour Lawsuit for Over $225K

November 29, 2011

Our Costa Mesa, California labor and employment lawyer blog previously discussed common wage and hour violations in the trucking industry--including wage theft, minimum wage violations and overtime payment violations, as well as the problem of employment misclassification.

In related news, two Massachusetts trucking companies have reached a settlement agreement with the Fair Labor Division of the Attorney General's Office, in order to resolve a wage and hour lawsuit by paying over $225,000 in vacation back wages to 170 former employees.

According to a press release from Attorney General Martha Coakley, in 2009, the Fair Labor Division began investigating two trucking companies, Ryder Truck Rental, Inc. as well as Ryder Integrated Logistics, Inc. after a former employee accused Ryder of failing to pay vacation wages when the employee's employment was terminated.

Upon review of Ryder's payroll documents and vacation policies, the Labor Division found that between January of 2006 and December of 2009, 170 former Ryder employees were not paid their entitled vacation wages at the time of job separation or termination.

Under Massachusetts law, employers who decide to provide paid vacation, must treat the vacation payment like any other wages--which includes all vacation time earned. When an employee is terminated or separated from employment, the employer must compensate the workers for all vacation time earned under the written or oral employment agreement.

Ryder reportedly fully cooperated with the Attorney General's investigation of the vacation pay records, and agreed to pay a total of $225,083.48 in vacation back pay, along with a civil penalty of $71,300 to the Commonwealth of Massachusetts. The trucking company also agreed to take steps to ensure compliance in the future with Massachusetts' vacation compensation law.

Our firm based in Orange County, California, represents employees in wage and hour lawsuits who have been robbed of their hard-earned wages and are seeking recovery. If you or someone you know has experienced wage and hour violations in the workplace, call us today for a free consultation about your rights, at 1-800-872-5925.

Two Companies Settle Complaints for Unpaid Vacation Wages, Attorney General Martha Coakley Press Release, November 4, 2011

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)