Iowa freight hauler to pay $160,073 in back wages to drivers

By Greg Grisolano, Land Line staff writer | 3/27/2013

A Des Moines carrier has agreed to pay 201 truck drivers a total of $160,073 in back wages and fringe benefits after failing to pay drivers for delay time during trips.

Contract Transport Inc., which has a contract to haul mail for the U.S. Postal service, was investigated by the U.S. Department of Labor for violating provisions of the McNamara-O’Hara Service Contract Act. The Labor Department announced the details of the investigation in a news release issued earlier this week. A spokesman for the Labor Department said the agency’s policy is not to disclose the reasons investigations are undertaken.

The investigation determined that the company paid drivers for a predetermined number of hours per trip, regardless of how long the trips took. Delays brought on by weather, construction or other factors resulted in hours worked by employees going unpaid. As a result, 115 employees at Contract Transport’s headquarters facility in Des Moines are due $64,217 in back wages, and 86 employees who operate out of the company’s Kansas City, MO, facility are due $95,856.

Contract Transport has also agreed to train both office staff and drivers on proper time documentation; to ensure future documentation of all hours worked, including delay time; and to provide a phone number to workers to report pay discrepancies. A message seeking comment was left with the company’s Des Moines office.

The SCA requires that contractors and subcontractors performing services on covered federal contracts in excess of $2,500 must pay their service workers no less than the wages and fringe benefits prevailing in the locality, or rates contained in a predecessor contractor’s collective bargaining agreement, according to the Labor Department’s release.

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