Limo Company to Pay $381,432 in Back Wages and Liquidated Damages for FLSA Violations

Friday, January 22, 2016
A federal judge has ordered a Chicago limo company to pay 34 drivers $190,716 in back wages and an equal additional amount in liquidated damages, totaling $381,432, after finding the company violated the overtime and recordkeeping provisions of the Fair Labor Standards Act.

Investigators from the U.S. Department of Labor’s Wage and Hour Division found that Town & Country Limousine Inc. incorrectly categorized the drivers as exempt from overtime under the motor carrier exemption. While some drivers met the requirements for the exemption in some workweeks, most were legally entitled to time-and-a-half for hours worked beyond 40 in a workweek.

The investigation found that the company did not compensate drivers for time spent prepping and cleaning their vehicles, driving to and from the corporate garage and waiting for their customers to arrive. When these unpaid hours resulted in drivers working beyond 40 hours, overtime was legally due. The employer also failed to record and maintain legally mandated time and payroll records.

The judgment resolves a lawsuit filed in March of 2015, and in addition to ordering the payment of back wages and damages, the judge permanently enjoined the company, John Jansen, the chief executive officer and William Lynch, the chief operating officer, from violating the FLSA in the future.
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