KAG West drivers awarded $14 million

| Tuesday, September 13, 2011

One of the largest petroleum tank truck transporters in the country, KAG West, has agreed to pay $14 million to drivers in California to settle a Fair Labor Standards Act class action lawsuit.

According to Business Wire, drivers for KAG West said they were forced to work “off the clock” and were not paid time-and-a-half for overtime work. The settlement ends a five-year FLSA court battle after the U.S. District Court for the Northern District of California granted the case class-action status in 2008.

According to a Law360 article about the case on Sept. 7, KAG argued that they did not have to pay drivers time-and-a-half for overtime “under the Motor Carrier Act exemption because its workers drive across state lines or carry products in a continuous stream of interstate commerce.”

Class members will receive settlements based on the “number of shifts worked during the class period,” the news report stated.

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