The US Department of Labor sued Timothy Schultz, owner of transport company ProCorp LLC, and the company’s operations manager, Nichole Shaffer, for more than $1.5 million in overtime wages and liquidated damages. The department claims the company misclassified approximately 700 drivers as independent contractors.
The lawsuit was filed in federal court in Michigan.
Drivers for the company — who move new vehicles among different yards throughout the Detroit metro area — were not paid overtime when they worked more than 40 hours per week because of the misclassification, according to the department.
In addition, the lawsuit alleges recordkeeping violations.