Regulations

Lessons To Be Learned From Class Action Wage Settlements

Martin Romjue
Posted on July 11, 2014

With class-action wage lawsuits and settlements afflicting an increasing number of small businesses and corporations, including limousine operations, LCT would like to highlight a legal blog dedicated to independent contractor compliance and misclassification. The blog comes courtesy of the Pepper Hamilton LLP law firm, with 500 attorneys in offices in Boston, Los Angeles, Detroit and other cities nationwide.

The Independent Contractor Compliance blog includes an analytical post highlighting a settlement involving a large chauffeured transportation company that can be instructive for operators throughout the industry.

The post also refers to a helpful tool for employers called IC Diagnostics, "a proprietary process that examines whether a group of workers not being treated as employees would pass the applicable tests for independent contractor (IC) status under governing state and federal laws. The tool also offers a number of practical, alternative solutions to enhance compliance with those laws."

Such advice and resources can provide valuable lessons for operators seeking to avoid wage and labor conflicts. Two recent labor and wage-related cases, and a past victory for the limousine industry, have once again underscored the need for awareness and good information on these issues:

If any LCT readers know of other helpful resources or insights for limo operators, please post them in the comments section below.

-- Martin Romjue, LCT editor

Related Topics: chauffeur behavior, employee management, employee wages, human resources, lawsuits, managing chauffeurs, wage lawsuits

Martin Romjue Editor
Comments ( 2 )
  • anthony

     | about 4 years ago

    The lesson to be made is : quality pay = quality chauffeur = repeat clients = increased $$$$ income for limousine business and growth. Flat illegal hourly wages = craigslist drivers = old limousines = no profits = bad reputation Most up start limousine companies do start with illegal wages and once they switch to being a legitimate limousine company the quality of drivers increases their client base. We all know the guys that cheat in payroll taxes , workers comp, etc.....they are usually driving some fancy car and have a vacation home......you all see them at the trade shows and events and look the other way....in reality those are the bad apples that ruin the limousine industry and keep doing it since no one gives them their back at events. These illegal operators are the same ones that give false information to other owners and turn those owners into illegal operators. In california when the owner of ascot limousine passed away, many owners spoke about how he ran a great service and if everyone followed his ways the industry would be 100% better...... ask your self "what will they say about me when my time is up on this earth"

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