Lawyers Looking for Wage and Hour Cases Against Tow Companies

For the few years, the lawyers at this website have been cautioning tow companies to make sure that their wage payment practices are in check because the consequences of failing to do so can be devastating.  Lawyers that are looking to sue tow companies for these violations are also aware of this fact.  Some lawyers that are particularly enthused about suing tow companies have actually been advertising looking for these types of cases.  Don’t believe me? 

By |2018-01-11T20:01:22-06:00January 11th, 2018|Human Resources|0 Comments

Illinois Case Provides Clarification to the Motor Carrier Exemption to the FLSA

In Demma v. Chicago 24 Hour Towing, Inc., the United States District Court for the Northern District of Illinois provided further clarification on the Motor Carrier Exemption to the Fair Labor Standards Act. In this case, a group of tow truck drivers contended that they were not paid overtime wages as required by the Fair Labor Standards Act, which generally requires that tow truck companies compensate any employee who works in excess of 40 hours per week at a rate 1.5 times the normal hourly wage.

By |2017-12-15T12:51:57-06:00December 15th, 2017|Other Legal Issues|0 Comments

Private Property Towing: are the Risks worth the Rewards?

Anyone who has attended a Towlawyer seminar has probably heard Michael McGovern and I warn about the risks and rewards of private property towing.  Private property towing is contentious and most everyone seems to dislike private property towers.  Therefore, our message is simple: if you want to succeed in private property towing, you have to be perfect.  You have to dot every “I” and cross every “T” every time.  If you don’t, you have given an angry consumer an opening to sue for civil violations or, even worse, an opening for a prosecutor to prosecute for criminal violations.  

By |2017-12-08T08:36:15-06:00December 8th, 2017|Private Property (Trespass) Towing|0 Comments

ELD Mandate: Deadlines are Approaching

If you’re out and about on December 4, 2017, you may notice truckers out in force protesting the controversial ELD Mandate. One report says protests have been planned in at least 40 states in advance of December 18, 2017, which is when Phase 2, the Compliance Phase, of the ELD Mandate takes place.  

By |2017-11-30T20:54:57-06:00November 30th, 2017|Other Legal Issues|0 Comments

Happy Thanksgiving

Thanksgiving is a day of thanks for the blessings bestowed upon us. As this year comes to a close, once again I find myself thankful to be a part of the towing community. The towing community has provided the privilege of meeting and working with people from all walks of life. Many of these people have become my closest friends.

By |2017-11-22T20:26:02-06:00November 22nd, 2017|Other Legal Issues|0 Comments

Paying by a Commission IS NOT An Exception to the FLSA

In my neck of the woods, most tow companies pay their drivers by a commission. While the commission system may be the preferred choice for your company, a commission system, absent some other factors, is not an exception to the record keeping, minimum wage, and overtime requirements of the Fair Labor Standards Act (FLSA). This means that tow companies still need to maintain records of hours worked either through a time clock or set schedule. This also means that employees must be paid at least minimum wage if their commission divided by their hours worked doesn’t equal minimum wage. Finally, employees must also be paid overtime if they are not exempt.

By |2017-11-17T09:50:04-06:00November 17th, 2017|Human Resources|0 Comments

Quiet That Title

The sale or auction of abandoned vehicles left with tow companies can provide a nice revenue boost for tow companies. Most states, including my home “states” of Kansas and Missouri (Kansas City is a border town), have a statutory lien procedure designed for this. If tow companies follow this procedure, they can obtain a “title” to the motor vehicle and sell it for a profit.

By |2017-11-10T07:54:19-06:00November 10th, 2017|Other Legal Issues|0 Comments

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