Wage and Hour Compliance

Mar 13, 2012 | Articles

Can your transportation management system help you with wage and hour compliance? What happens in California will happen elsewhere.  A U.S. District Court judge in California issued a Temporary Restraining Order enjoining a group of logistics and warehouse operators from continuing to issue deficient wage statements and requiring that the hours worked by employees paid on a piece-rate basis (i.e., miles, stops, or other activity-based pay system) be recorded.

The decision highlights the importance of ensuring all wage statements issued to California employees disclose all required information.  

The information that must appear on all wage statements under California law includes:

  1. gross wages earned
  2. total hours worked by the employee
  3. the number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis
  4. all deductions, provided, that all deductions made on written orders of the employee may be aggregated and shown as one item
  5. net wages earned
  6. the inclusive dates of the period for which the employee is paid
  7. the name of the employee and the last four digits of his or her Social Security number or their employee identification number
  8. the name and address of the legal entity that is the employer
  9. all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee.

These requirements are equally applicable to out of state motor carriers with California operations. Along with verifying that your wage statements are compliant with California law, motor carriers, logistics providers, and other transportation companies should also ensure that the hours worked by those employees are being recorded.  Regardless of whether employees – including drivers – are paid on a piece-rate, hourly or some other basis, their hours must be tracked and included on wage statements each pay period.

We learned at the NSRMCA National Conference back in August that the US Department of Labor has hired 300 new auditors, and that number does not include state hires.  What’s mandatory in California is recommended in any state – make sure your work plan is clear, and that your workers’ activities are clearly documented.

You can set up LoadTrek to document your Fair Labor Standards Act compliance.  Document any and all required activities when you set up the route, load or job.  Make sure all required pre-trip and post-trip required activities are documented.  Set up standard times for these activities based on normal circumstances.  Set up as a route “stop” any authorized break periods, with stop comments regarding the nature and duration of that stop.  Create clear comments for each planned stop on the route; whether loading, unloading, or performing service work. 

Make certain your entire company understands that the scheduled times are there for a reason – and that under normal circumstances they are achievable.    

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