Is TCI Transportation Violating Wage and Hour Laws?

TCI Transportation, a truck leasing and rental company, is one of several firms being investigated for possible violations of wage and hour laws.

These companies are suspected of misclassifying their employees as independent contractors or treating and paying them as if they were owner operators. Numerous complaints from truck drivers say that they are expected to cover their own costs, yet the company continues to exert control over how they do their jobs in a manner that should mean they are employees. As a result, these drivers may have been underpaid or denied other benefits or protections they are owed.

Company Driver vs. Owner Operator: What Is the Difference?

While both types of truckers must have the same knowledge and skill set in order to perform their duties and must follow the same laws and regulations governing the trucking industry, there are substantial differences between a driver who is an employee of a company such as TCI Transportation and an independent owner operator.

When a truck driver signs on with a company as a driver, they are required to fill out a W2 form. This authorizes the employer to deduct state and federal income taxes, FICA (Social Security taxes), unemployment insurance, etc.

As an employer, the company is obligated to furnish the vehicle, pay for fuel, maintenance and insurance in addition to an hourly or per-mile wage and reimbursement for all reasonable work-related costs. As an employee, a company driver is required to follow company policy and perform their work duties according to the company’s schedule and specific requirements.

An owner operator is an independent contractor who operates what is in essence their own small business. They must continually seek out jobs, and are free to perform those tasks on their own schedule in whatever manner they see fit (or however the client wants it done).

Typically, an owner operator fills out a W9 form, which enables the client to report payments to the Internal Revenue Service. As an independent contractor, the owner operator is responsible for paying their own taxes.

The owner operator owns their own vehicle, and is responsible for all costs related to fuel, maintenance and insurance. However, these work-related expenses are usually tax-deductible; with careful planning and by keeping good records, owner operators typically have little in the way of tax liability.

Were TCI Transportation and Others Trying to Have it Both Ways?

Trucking companies that have been targeted in lawsuit investigations have been accused of classifying employees as independent contractors.

On one hand, truckers who have been affected say they are required to abide by company schedules and follow company-specific rules. On the other hand, they allege that these carriers are foisting many work-related expenses on to their shoulders, expecting them to cover fuel and maintenance costs as well as leasing their own vehicles. By the time all is said and done, many of these truckers claim they are not even making minimum wage.

Essentially, misclassification can be used to leave truck drivers on their own for many major expenses, without giving them the benefits of an employee. Companies can use this to maintain control over drivers without paying these significant business costs.

Misclassification Lawsuits

Unfortunately, employee misclassification happens more frequently than it should – and it happens in all professions. Furthermore, courts have generally sided with employees who have brought legal action against their employers for misclassification – but the problem continues.

In addition to TCI Transportation, the following carriers have been under investigation:

• Mercer Transportation
• Dalton Trucking Inc.
• Gardner Trucking Inc.
• Heitz Trucking Inc.
• Hendrickson Truck Lines
• KKW Trucking Inc.
• Matheson Inc.
• Osterkamp Transportation
• R & A Trucking Company
• TRIUS Trucking

Can You File a Trucker Misclassification Lawsuit?

A growing number of truck drivers are coming forward with allegations that they were classified as independent contractors rather than employees, denying them their rightful employee benefits, wages, and other protections. Trucker misclassification lawsuits and class action lawsuits have been successful in the past, paying out in some cases millions of dollars in back wages after misclassification.

For example, a January 2019 verdict in which a group of California drivers was awarded nearly $6 million by the California Labor Commissioner.

If you have worked as a truck driver for a long haul trucking company and believe you have been misclassified as an independent contractor rather than an employee, you may be able to file a lawsuit or join a wage and hour class action lawsuit and pursue compensation. Filing a lawsuit can help you recover wages and benefits owed to you.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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