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January 25, 2006 DOL Home > ESA > WHD > News Releases > Dallas > 04-937-DAL
News Release

U.S. Department of Labor
Wage and Hour Division
Release Number: 04-937-DAL
Date:
Thurs., May 20, 2004

Contact:
Diana Petterson or Elizabeth Todd

Phone:
1-866-4-USWAGE



U.S. Department of Labor Recovers $147,153 in Back Wages for 32 Drivers and Dispatchers in Dallas
DALLAS -- Carey Limousine Dallas Inc. in Dallas has paid $147,153 in back overtime wages after a U.S. Department of Labor investigation found that 32 former and current drivers and dispatchers had not been properly paid.


"The Department of Labor is committed to enforcing the law to ensure that employees receive the wages they have earned," said Secretary of Labor Elaine L. Chao. "In this case, we have recovered more than $147,000 in back pay for 32 Texas workers. This Administration is committed to protecting all workers, particularly low-wage workers. Through the Department of Labor's determined efforts, more than $121 million in back wages were recovered for workers last year."

The investigation, conducted by the department's Wage and Hour Division, covered a two-year period, from Oct. 27, 2001 to Oct. 26, 2003, and determined that Carey Limousine had violated the overtime provisions of the Fair Labor Standards Act (FLSA) by not properly paying the employees overtime wages equal to one and one-half times their regular rate of pay for the hours they worked.

Most of the employees were paid a salary, or by commission, without any overtime compensation. However, the employees were entitled to the overtime pay because they worked more than 40 hours a week.

The company has paid the back wages and agreed to future compliance with the FLSA.

The FLSA requires that covered employees be paid the minimum wage of $5.15 per hour for all hours worked, plus time and one-half their regular rate of pay for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records and has restrictions on employment for minors under 18 years of age.

For more information about the FLSA, call the Wage Hour Dallas District Office, at (817) 861-2150, metro number at (817) 261-4371 or the Department of Labor's toll-free line at 1-866-4USWAGE (1-866-487-9243). Information is also available at www.wagehour.dol.gov and www.youthrules.dol.gov.
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It is very competetive in the Detroit market. Right now every one is rolling in dough because of Super Bowl and the Auto show but it will be a pretty scarce couple of months untill prom season starts and with the way the auto industry looks right now, that may be a little shakey.

David, from what you have posted in the past, :ie the rates are so poor as everyone is fighting for the business and the mom and dads are out the doing work in your area, its not surprising that the pay rates are so bad, its a reflection of the continual underselling of the transport business in your area, if there were no drivers ( sorry chauffeurs ) that would turn out for such poor pay then the businesses would have to increase their rates instead of fighting to be the cheapest, there is a difference between a Timex and a Rolex, educating the public should be part of our remit. If its not done then you end up with what you have now.

David, What is your ownership and employee experience ?

Along the same lines a Gunny is talking about, MOST companies in the Detroit area only pay CONTRACT hours. The only one I know of pays actual hours because he got busted by the state by a Pi**ed off Employee and now he has to pay by the clock hour.

Many of time I drove an hour or so to and back from a run plus spend an hour or so cleaning and fueling for three Contract hours when actually I spent about seven hours on the run. Or how about a looser Airport run where you get a flat $15.00 drive to the airport in rush hour traffic, wait for the luggage, take person home and then have to drive about an hour back to the office, clean and fuel the Car for maybe a $5.00 tip. You got about 5 hours in for a $20.00 bill. Thats how they screw the EMPLOYEES who should had been paid from the time they punch in until the time they went home.

Wade: I am a member of the Chamber of Commerce in three different Cities as well as being a player in the local IDC. Most business's can afford overtime, it just means that the owner of the Business may have to drive A mercury rather than a Town Car. Besides it is not the business paying the OT, it is that business's customers paying it.

While we're on the subject, does anyone know anything about the outcome of the suit against Music's NY operation? Seems to have dropped off the radar in the last couple of years.

quote:

Originally posted by David Merrill:
Wade: I cannot afford to pay $11.99 per $100.00 of payroll for workers Comp but I do it because it is the law. I cannot afford to pay $7.25 per $100.00 of pay roll for FICA and Medicare. I cannot afford to pay $3.25 per $100.00 of Pay roll for FUTA and state unemployment tax but I do it because it is the law. I don't feel it is fair that I have to pay all of these taxes on Tips that I receive no benifit from but I do it because it is the law. I guess I could just tell my Employees they are Independent Contractors, Stick my middle finger up at the law and then My Independent contractors can work 100 hours a week if they wanted to for $5.25 per hour.

Pay them the over time, it will pay you in the long run. Besides at least in Michigan anyway all you have to pay Tipped Employees is $2.13 per hour, federal minimum wage for tipped Employees. Time and 1/2 of that is only $3.19 per hour, I am sure any one can afford that. You do not have to pay time and 1/2 on tips.

Dave your missing the point. The company cannot afford overtime therefore no chauffeurs are allowed to work overtime. The chauffeurs want to work a extra 10-hours per week. Now they have to get a part-time job that actually pays less than their full-time job for the extra cash. Now who gets hurt in this scenario?

By the way I know of lots of companies and employees in this same exact situation. It is very common. This does not just apply to our industry.

And Dave not every company can afford to have their employees work for overtime wages. The statement you made about anyone being able to afford it is simply not true. Join your chamber of commerce, go to the meetings and ask how many fellow business owners how much their bottom line profit margin is. Then ask them if they can afford to pay overtime wages. Most will tell you they have a policy against workers working overtime to prevent this.

My Worker's Comp is 30.93%, if I had to pay 11.99% I'd be grateful.

For every chauffeur/driver willing to work OT without being paid 1.5 of "base" salary there is someone else who doesn't want that OT but is kind of forced into doing it as repercussions "DO" happen.
And for many, the time clocked is not the time actually invested for the job done. One would have to work a major metro area to realize how easily a 1 hour gig can easily turn into a 21/2 hour nightmare with no comp in return. BTDT.
Again, what we have is a double standard, bust the Gypsy's for operating with no permits (local law/ordinances) but violating Federal Law is OK.

Though I do understand where Wade is coming from & many small Operators do have special/tighter relationships with drivers & many are even paid partially off the books (cash jobs), it is not the small Operators that are going to get nailed in my opinion. It is the large Operators building their fortunes off the backs of the employees who will & rightfully so.

And if any one thinks that the NLA is fighting the OT regulations to protect the small operators from paying OT, I've got 20 acres of swampland at a primo price.

Wade: I cannot afford to pay $11.99 per $100.00 of payroll for workers Comp but I do it because it is the law. I cannot afford to pay $7.25 per $100.00 of pay roll for FICA and Medicare. I cannot afford to pay $3.25 per $100.00 of Pay roll for FUTA and state unemployment tax but I do it because it is the law. I don't feel it is fair that I have to pay all of these taxes on Tips that I receive no benifit from but I do it because it is the law. I guess I could just tell my Employees they are Independent Contractors, Stick my middle finger up at the law and then My Independent contractors can work 100 hours a week if they wanted to for $5.25 per hour.

Pay them the over time, it will pay you in the long run. Besides at least in Michigan anyway all you have to pay Tipped Employees is $2.13 per hour, federal minimum wage for tipped Employees. Time and 1/2 of that is only $3.19 per hour, I am sure any one can afford that. You do not have to pay time and 1/2 on tips.

Here is a scenario for you small business owner haters. Lets say my average chauffeur makes an average of $19.00 per hour including tips. Lets say this average chauffeur has a family and needs to work 40+ hours a week to support this family in the manner he thinks they should live. Lets also say this hard working chauffeur wants to work an extra 10 hours per week to put him over the top to help pay some unforseen expense. We have a policy against overtime because we can't afford it. But the chauffeur wants to work overtime and needs to find an addtional part-time job now making less than he is making here to pay for these unforseen expenses. The chauffeur really wants to work here extra hours and would gladly work the extra 10 hours per week at the $19.00 per hour average. Now who does this scenario hurt?

Just the Tip of the Iceberg. For every one they catch, there are 10 others who are cheating their Employees (yes Employees, not Independent Contractors) out of their proper pay and Bennies. Like Gunny said, the Boo Hoo towel's will come out when they get caught.

quote:

Originally posted by gunny:
WHAAAAAA
Out will come the boo hoo towels
Paying employees OT is unfair
WHAAAAAA

It's only okay if the government and large businesses do it. But smaller folks like us have to take it.

WHAAAAAA
Out will come the boo hoo towels
Paying employees OT is unfair
WHAAAAAA