A federal court has determined that an auto parts distributor and an Arizona logistics firm are joint employers that owe $5.6 million in back wages and liquidated damages for misclassifying nearly 1,400 delivery drivers as independent contractors.
The consent judgment, announced Thursday by the US Department of Labor, found that Parts Authority Arizona LLC used Arizona Logistics Inc.—operating as Diligent Delivery Systems—to deliver products, but failed to pay the proper wages, overtime, or reimbursement for costs by treating those workers as independent contractors instead of employees.
The investigation by the Wage and Hour Division’s Phoenix District Office uncovered violations that ...
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