We have written much in these blogs about the need for a quality employment manual. Now it’s time to devote some time to an equally important manual: the safety manual. The safety manual is just what it sounds like: it’s a comprehensive source of safety policies that your company requires. For the security of your company and drivers, a safety manual is a must. It tells your drivers how to correctly, and safely, do their jobs. However, from a financial perspective, a safety manual can also save you money. This is because in the modern climate of skyrocketing insurance rates, most reputable insurance companies will require your company to have a safety manual before they will issue you a competitive rate.

Understanding required minimum wage pay can save you time, legal problems and a lot of money. TowLawyer attorney, Nick Porto, discusses what you need to know to make sure your business is compliant with required minimum wage pay.

The other day, I received another phone call from a tow company being sued for violations of the Fair Labor Standards Act (FLSA), which regulates minimum wage, overtime pay, and record keeping for most employers. Every time I get a call such as this, I experience two competing emotions: I am sad for the tow company getting sued because I know the road ahead will be wildly expensive and likely not end with a good result. However, I also experience a twinge of anger at the tow company for not implementing basic measures to avoid these types of lawsuits.

In the past few years, the lawyers at www.towlawyer.com have had the opportunity to travel all over the country and hear about different ways that tow companies pay drivers. Some companies prefer a salary. Others pay by the hour. And some, including most of the companies in my hometown of Kansas City, pay a commission. All of these arrangements have their own positives and negatives and this article is not intended to be an endorsement of any structure provided, of course, it has been carefully screened for its overtime and minimum wage legalities. However, one common issue faced by most payment structures is how to handle “on call time.”

Tow companies often invest thousands of dollars in training employees how to operate expensive equipment. It would seem reasonable that tow companies should reap the rewards of these investments. Conversely, it seems unfair that a tow operator should accept this training only to start his own tow company or, even worse, accept employment with a competitor. Often times, a tow company will seek to solve this problem by requiring employees to sign a document containing post employment restrictions such as non-disclosure agreements, non-solicitation agreements, and non-compete agreements. Because the legalities of each type of agreement are different, a basic understanding of each is helpful.

“March Madness” has begun and hoops is on my mind. It strikes me that running a tow company, in some ways, is like playing basketball. There are offensive moves designed to increase revenue, such as implementing certain billing techniques, getting on tow rotations, and buying new equipment. And then there is playing defense which means doing everything you can do to protect your company from outside forces that can cause financial ruin to your company such as lawsuits, insurance companies, and regulatory agencies. Think of your employee handbook as your defense. It might not make you any more money but it will certainly help you keep the money you’ve got.

As a general rule, towing businesses are required by law to pay for the medical treatment and lost wages of employees who suffer work-related injuries, without regard to fault. In order to avoid potentially crippling expenses in that regard, all fifty states require companies with a certain minimum number of employees to purchase workers’ compensation insurance or be adequately self-insured. The minimum number of employees varies from state to state but, typically, the number is between three and ten. Once that threshold number of employees is met, then workers compensation insurance must be obtained by the employer.