Business & Tech
SF Federal Judge Orders Company to Pay Back Wages
The workers had been labeled as independent contractors when they were really full-time employees, the judge ruled.
SAN FRANCISCO, CA - The owner of a Silicon Valley taxi and limousine company has been ordered to pay $175,000 in back wages to dozens of drivers misclassified as independent contractors rather than full-time employees, the U.S. Department of Labor announced today.
Drivers with the Mountain View-based Yellow Cab Taxi Co. and AAA Legacy Limousine Service were required to work 12-hour shifts six days per week but were paid only a percentage of their fares and not ensured a minimum wage, according to the Department of Labor.
By classifying the drivers as independent contractors, the business owner, Sayed Abbas, avoided paying unemployment insurance and workers' compensation.
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The awards for the 37 drivers range from $552 to more than $25,000, according to the order by U.S. District Judge Edward Davila.
The case dragged on for years as Abbas fought the allegations.
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The Department of Labor contended he interfered with the investigation and retaliated against drivers who cooperated.
"We see far too many employees misclassifying employees as independent contractors to avoid their obligation to pay the minimum wage and comply with worker protection and tax laws," Department of Labor western region solicitor Janet Herold said in a statement.
"Employers like Sayed Abbas take advantage of vulnerable workers by making them sign sham independent contractor agreements that mask actual working conditions," Herold said.
--Bay City News
