Walsh v. Alpha & Omega USA, Inc., d/b/a Travelon Transportation is a lawsuit in the District of Minnesota involving drivers at a non-emergency medical transport company. The U.S. Department of Labor brought the case after Travelon classified its drivers as independent contractors instead of employees, which denied them overtime pay and other protections under the Fair Labor Standards Act (FLSA).
The Wage and Hour Division investigated after complaints surfaced and found multiple violations. Drivers routinely worked long shifts transporting patients but did not receive time-and-a-half for hours over forty. The investigation also revealed failures in recordkeeping and improper deductions from pay. When the company did not comply with the Department’s findings, the case moved to court.
At trial, the central issue was whether the drivers were employees or independent contractors under the economic realities test. Evidence showed that Travelon exercised control over scheduling, routes, and conditions of work, which supported employee status. A jury found that the drivers were misclassified. The court awarded $254K in back wages and liquidated damages to 21 current and former drivers.
Travelon appealed, but the Eighth Circuit upheld the judgment. The appellate court confirmed that the jury’s findings were supported by the evidence and that the damages award was proper. The decision reinforced that labeling workers as contractors does not override the reality of the employment relationship when the facts show otherwise.
Lessons learned from the case:
- Employers must classify workers based on the economic realities of their work, not on contract labels.
- Employees who work more than forty hours in a week are entitled to overtime pay, and misclassification does not eliminate that obligation.
- Companies that fail to keep accurate time and pay records create risks for wage disputes and potential liability.
- Ignoring or contesting agency findings without corrective action can escalate into jury trials, damages, and affirmed judgments on appeal.
If you want to know more about overtime regulations, read our guide on Minnesota Overtime Laws.
