DETROIT – Timothy Schultz, sole owner of a now defunct Detroit-area transport company, will pay $273,819 – representing $252,416 in overtime back wages and $21,403 in interest – to 326 former drivers to resolve a U.S. Department of Labor lawsuit prompted by a federal investigation that found Schultz and his company ProCorp LLC, misclassified drivers as independent contractors and failed to pay overtime, in violation of the Fair Labor Standards Act.
In a consent order entered by the U.S. District Court in the Eastern District of Michigan, on March 3, Schultz agreed to make restitution over a five-year period. Schultz, former ProCorp operations manager Nichole Rode and two of Schultz’s current companies – Downriver Staffing Group LLC and Navicorp LLC – also agreed to future FLSA compliance including classifying drivers as employees instead of independent contractors. ProCorp was a Taylor-based company that employed drivers to shuttle newly manufactured cars around metro-Detroit lots for storage and to rail yards for shipment outside of Detroit. Downriver Staffing Group is in the same business as ProCorp; Navicorp is a staffing agency that supplies staffing to manufacturing operations in metro Detroit.
“The U.S. Department of Labor will hold employers who violate federal wage laws accountable and take all necessary steps to recover back wages due to employees,” said Wage and Hour Division District Director Timolin Mitchell in Detroit. “Very specific conditions must be met to...
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