A U.S. Department of Labor investigation found that FedEx owes 235 workers in Birmingham, Ala., over $181,000 in back pay.
The department’s Wage and Hour Division saidWednesday that two subcontractors for the courier company, Steel City Couriers Inc. and Cahaba Valley Couriers Inc., paid workers a flat weekly rate and didn’t keep accurate records of hours worked, in violation of the Fair Labor Standards Act.
The employers claim to have misinterpreted section 13(b)(1) of the FLSA, which provides an overtime exemption to workers employed by a motor carrier, driving on interstate highways, operating delivery trucks weighing at least 10,000 pounds, or engaged in “safety affecting activities,” the Labor Department said.
The investigation led to the recovery of $181,379 in back wages.
“Misapplying overtime rules deprives workers of their legal right to be paid time-and-a-half for hours over 40 in a workweek,” said Kenneth Stripling, Wage and Hour division district director in Birmingham. “Employers who ignore their obligations and violate workers’ rights can find their mistakes costly and their ability to recruit and retain the people they need to run a successful business difficult, if not impossible.”
Steel City Couriers didn’t immediately respond to requests for comment. Attempts to reach Cahaba Valley Couriers were unsuccessful.
To contact the reporter on this story: Jalen Brown at [email protected]
To contact the editors responsible for this story: Genevieve...
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