The U.S. Department of Labor (DOL) won a misclassification case in November. Last week, they announced their pursuit of about 1,400 drivers in Arizona. These drivers are owed up to $5.6 million.
A federal court has made a decision. 1,398 drivers who worked for Parts Authority Arizona LLC and Arizona Logistics Inc., doing business as Diligent Delivery Systems, are owed $2.8 million in back pay and $2.8 million in damages.
Eric Murray, the DOL’s Phoenix district director of wage and hour services, stated in a news release that the goal is to ensure that Parts Authority Arizona and Arizona Logistics workers receive all the wages and damages owed to them. It can be challenging to locate workers when they change addresses or phone numbers, and they might not even realize that they are owed back pay.
Misclassified Arizona Delivery Drivers to Receive Back Pay and Damages
In November, a judge said that Parts Authority Arizona and Arizona Logistics had to pay workers who had been wrongly labeled as drivers.
According to court documents, Diligent Delivery Systems had its drivers sign “owner-operator agreements” and other papers “that were supposed to classify driver employees as independent contractors.”
The Department of Labor found that companies violated the FLSA. They paid drivers less than the minimum wage, didn’t pay for overtime, and didn’t keep accurate time records.
Investigators say businesses expected employees to use their own cars for runs without extra pay.
Drivers are owed up to $120,000 in back pay, according to court papers. Drivers misclassified will receive their final payment in October 2025.
Parts Authority And Diligent Delivery Systems And The Penalty They Faced
Parts Authority uses Diligent Delivery for shipping. Parts Authority uses Diligent Delivery for transportation. The company has 46 offices across the country. They work with the medical, retail, and e-commerce industries. The company has a fast delivery service for urgent goods. They also have a transportation part for long distances.
Parts Authority sells car parts, tools, machines, and engines. They sell these products all over the United States. There are over 200 locations. Four of them are in Arizona: Tempe, Phoenix, Mesa, and Surprise.
As part of the ruling, Diligent Delivery Systems’ CEO and owner, Larry Browne, was fined $150,000.
In conclusion, the federal court ordered Parts Authority Arizona LLC and Arizona Logistics Inc., also known as Diligent Delivery Systems, to compensate 1,398 drivers who worked for them from 2012 to 2020. The payment includes $2.8 million in back wages and $2.8 million in damages. The U.S. Department of Labor (DOL) received money through a consent ruling. The companies falsely called their staff drivers self-employed.”
Nearly 1,400 delivery drivers will benefit from this news since they will earn back pay and damages. Do you want to know about transportation and logistics markets every day? Lading Logistics is a way to learn about new developments and trends in the business. Our services include transportation, warehousing, inventory management, and more.