FedEx contractors denied workers overtime pay, feds say. Now, they’re paying it back
Two Alabama delivery companies contracted by FedEx denied over 200 workers overtime pay, authorities said.
Now, the companies have to pay back their workers.
Steel City Couriers Inc. and Cahaba Valley Couriers Inc., two Birmingham subcontractors employed by FedEx, denied 235 workers overtime pay and did not keep accurate records of the hours they worked, according to a news release from the U.S. Department of Labor.
Cahaba Valley Couriers and Steel City Couriers could not be reached for comment.
“FedEx Ground contracts for transportation services only with service provider companies that agree to classify and treat their staff as employees under applicable laws with corresponding rights and protections. Service provider companies are solely and contractually responsible for complying with wage and hour laws that apply to their employees, and each business is responsible for implementing its own pay practices,” FedEx said in a May 26 statement. “Neither of the businesses involved in this investigation have provided services on behalf of FedEx Ground since fall of 2021.”
Employees were paid regular pay and a flat weekly rate without overtime pay for hours worked over 40 in a week, according to the agency.
The Labor Department said it has recovered $181,379 in back wages for employees.
This story was originally published May 26, 2022 at 10:11 AM with the headline "FedEx contractors denied workers overtime pay, feds say. Now, they’re paying it back."
