Lessons Learned from Florida 2018

At the 2018 Florida Tow Show, Michael McGovern and I were pleased to present our seminar on human resources issues in the tow industry. Much of this seminar was spent discussing wage payment practices. In reflecting on the seminar, I was again reminded of the many unique features of the tow industry regarding the payment of wages to tow drivers. Many employees are paid on a commission. Most work is done “outside the office.” Many employees take trucks home at night and on the weekends. Add to this the fact that there are actual laws specific to the tow industry for the payment of overtime wages. All in all, human resources in the tow industry are complicated to say the least. 

By |2018-04-08T21:52:37-05:00April 8th, 2018|Human Resources|0 Comments

Avoid an Insurance Disaster

I heard a horror story the other day.  A tow company in rural Kansas had a terrible fire that destroyed nearly every car it was storing.  Within hours, the tow company was getting inundated with phone calls from vehicle owners asking for the tow company’s insurance information so they could make a claim.  The tow company called its agent, who was not experienced in selling insurance to tow companies, to submit the claim.  After a few anxious hours, the tow company received horrible news: the tow company didn’t have garage keepers insurance and therefore the claim was denied.    In a matter of minutes, what should have been an insured claim turned into a potential financial disaster.  How can this be avoided?

By |2018-03-31T14:00:18-05:00March 31st, 2018|Other Legal Issues|0 Comments

Another Tow Operator Killed and No Charges Filed

On May 11, 2017, tow truck driver Scott Bowles was tragically struck and killed by a passing motorist in Bell County, Texas. Scott Bowles left behind his wife, Stephanie, who is also a tow truck driver, and three children. Stephanie Bowles was fortunately able to recover a civil settlement regarding the death of her husband. However, to date, the Bell County, Texas prosecutor has yet to file any criminal charges against the motorist who struck Mr. Bowles despite protests from Stephanie and the local tow community.

Covenants Not to Compete and Not Solicit

I have always been impressed by tow companies’ tolerance for financial risk.  The expenses in the tow business are enormous and growing every day.  At the end of the line, there is one company owner who has likely financially guaranteed all of these risks and the liability for the same.  It is understandable that an owner might want to mitigate these risks in any way that they can.

By |2018-03-09T13:09:28-06:00March 9th, 2018|Human Resources, Other Legal Issues|0 Comments

Tow Monopoly or Tow Rotation?

Some tow companies will do whatever it takes to get on a tow rotation.  I’ve seen tow companies come up with all sorts of creative ways to achieve this.  What I’ve never seen is the Wall Street Journal covering tow rotations.  I’ve also never scene a tow company facing a high profile criminal indictment for tow rotation practices.  But this was exactly the case in a February 21, 2018 article captioned “10 New York City Tow-Truck Firms Indicated.”

By |2018-03-02T07:42:01-06:00March 2nd, 2018|Tow Rotation Lists/Contracts|0 Comments

Florida Tow Show 2018

When Michael McGovern and I started this website in 2016, we wanted to create a place where tow companies (as opposed to tow drivers) could safely and quickly obtain accurate legal information from attorney’s knowledgeable in the towing industry.  In doing so, we recognize that, maybe more now than ever, there is a big difference between tow company owners and tow drivers as much of the risk tow companies now face comes from claims made by drivers against their employers.  We are careful not to publicize this information in other publications for fear that it may be read by tow companies and drivers alike.  However, we feel comfortable publishing it here because our subscribers are owners or high level employees.

By |2018-03-07T07:03:13-06:00February 22nd, 2018|Human Resources|0 Comments

Reducing the Hours Worked by Tow Drivers

When a tow company is being sued for minimum or overtime wage violations, one of the first issues both parties must confront is how many hours the tow driver actually worked.  Because of the unusual nature of the tow business where drivers are on shift for long periods of time but not actually performing tows, it is not uncommon for the tow company to say “I have no idea how many hours claimant worked.”

By |2018-02-15T20:06:35-06:00February 15th, 2018|Human Resources|0 Comments

What is a Bailment?

When a tow company takes possession of a vehicle, a variety of legal obligations are impacted. One of these is the creation of a bailment. A bailment describes a legal relationship where physical possession of property is transferred from one person to another person. In the tow business, a bailment is established once a motor vehicle belonging to someone else comes into the possession of the tow company. The owner of the vehicle is “bailor” and the tow company is the “bailee.” But what do these fancy legal words mean?

By |2018-02-12T09:28:08-06:00February 12th, 2018|Other Legal Issues, Vehicle Impounding & Liens|0 Comments

Be Careful with that Police Scanner

In my neck of the woods, it is commonplace for tow companies to monitor the police radio waves with an electronic scanner. This has become even more frequent with the advent of the cell phone and download of a police scanner app. But is the use of a police scanner itself an illegal act?  

By |2018-02-01T20:10:05-06:00February 1st, 2018|Other Legal Issues|0 Comments

Dealing with the Good Old Boy Tow Rotation

The good old boy “tow rotation” goes something like this.  The law enforcement agency or municipality has a police chief that has been place in for years. During these years, the Chief has used the same tow company for police towing.  There is no written rotation.  The only policy, so to speak, is the Chief uses his old buddy for towing and if you’re not his buddy, you’re probably not getting the tows.

By |2018-01-19T11:26:48-06:00January 19th, 2018|Tow Rotation Lists/Contracts|0 Comments

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