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Truck drivers for PAM Transport, who filed a labor lawsuit against the company nearly four years ago, are finally set to receive compensation for their wage and hour claims. Truck driver compensation has historically been complicated, since truck drivers are usually paid per mile, not per hour—which can lead to some problems with wage and hour law at the federal and state levels.
The truckers originally filed their lawsuit back in 2016, alleging that the trucking company had violated both the Fair Labor Standards Act (FLSA) and Arkansas Minimum Wage Law (AMWL) by failing to pay minimum wage “for all hours worked.”
The lawsuit alleged that truckers were required by the company to remain over-the-road (OTR) or at least near their truck for long periods of time in excess of 24 hours at once. Indeed, drivers alleged that they were, essentially, “continually” on duty.
Under Arkansas law, in a 24-hour period spent with a truck, 16 of those hours are considered work time and must be compensated with at least minimum wage, the truckers claimed. However, the drivers argue that they were required to work more than 16 hours a day with a variety of duties that affected their sleeping time.
The lawsuit also cited other wage issues. According to the complaint, the company made “unlawful deductions” from their drivers’ pay, such as charging a $10 fee for advances up to $75. The lawsuit was filed as a class action, on behalf of drivers working for the company between Dec. 9, 2013 and Dec. 31, 2019. The class action ended up including thousands of PAM Transport drivers.
PAM Transport filed a motion to dismiss the claims filed by these drivers, but in 2018, the motion was denied by the court. Essentially, the denial of the motion to dismiss meant that the Court decided that time waiting in the truck’s sleeper berth still constitutes work.
PAM Transport agreed to pay a $16.5 million to bring an end to the wage and hour allegations, though it is important to note that the company has not admitted any wrongdoing in the terms of the settlement agreement. The settlement was granted final approval by Judge Timothy L. Brooks of the U.S. District Court for the Western District of Arkansas at the end of July.
The three named plaintiffs in the case are set to receive $40,000 service awards, plaintiffs who sat for deposition will receive $1,000 apiece, and plaintiffs who had prepared to testify at trial (though it didn’t happen) will receive $2,500 each.
The rest of the class members will receive various amounts depending on how long they worked with PAM as a trucker. Each class member will receive at least $150, plus more based on how many weeks they worked. On average, each will receive around $600.
The settlement agreement didn’t only include monetary terms. On top of the financial awards, PAM Transport also agreed to stop charging its drivers $10 to receive wage advances, as well as stop withholding wages on payday due to late paperwork. The company maintains that it did nothing wrong and denies all of the complaint’s allegations.
Notably, the settlement agreement was initially reached between PAM Transport and the truckers back in February—just one day before the trial was set to begin.
More and more trucking companies are being hit with allegations of wage and hour violations over issues of minimum wage, overtime, healthcare, misclassification, and more.
If you currently work or have worked for a trucking company like PAM Transport and believe your company may have failed to pay you proper wages or overtime, or has otherwise violated wage and hour laws, you may be able to join this class action lawsuit investigation and pursue compensation.
Filing a lawsuit can be a daunting prospect, but 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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16 thoughts onPAM Transport Wage Lawsuit Ends with $16.5 Million Settlement
I feel I have a case against a company regarding a company who violated wage and hour laws by forcing drivers to run illegal drops of more than the 11hr rule and taking maintenance out of settlements w/o fixing the truck. They also don’t return the money after you leave the company.
I worked for P.A.M. transport as my first trucking company in 2011 for 7 months before I finally caved in and quit. I was making 0.25 cents per mile and averaged around $250 per week. I couldn’t afford to pay for my cellphone and couldn’t afford to continue eating. I loved off advances to get by until they refused to give them as they were eating into that $250 a week I was getting. I never got any money, nobody informed me of how to get repaid. Other than the one email that basically said..if this applies to me then ignore the email to opt in and after settlement then any money owed would be distributed. Never received a single penny. So..where is my compensation for the 75 hrs a week I was working? Making 0.25 cents a mile.