In 2022, 7,965 truck drivers won a class action case against their employer P.A.M. Transport Inc. The truck drivers alleged that their employer failed to compensate them for all the hours they were on the road. As a result, they were denied overtime pay for working beyond the standard 40 hours a week between January 2020 and July 2022.
In addition to computing their hours inaccurately and denying them overtime pay, the truckers accused their employer of using an escrow account to deduct their wages and applying unreasonable interest rates on salary advances.
The United States District Court for the Western District of Arkansas approved a settlement of $4.75 million and ordered P.A.M. Transport Inc. to modify its payroll and advance policies to prevent similar labor law violations in the future.
Lessons learned from the case:
- The case underscores the importance of defining compensable time clearly and ensuring that employees are compensated for all the time they spend on work-related activities.
- The case highlights the importance of tracking time worked to ensure that regular hours and overtime hours are recorded accurately and compensated accordingly.
Learn more about Arkansas Labor Laws through our detailed guide.
