Truckers file lawsuit against Texas transportation company over unfair compensation

Posted
by John Chapman

A group of truckers has filed a lawsuit against a Texas-based transportation company over unfair compensation. The lawsuit, filed by five truckers against TIGA Logistics, alleges that the company overcharged them for expenses while failing to fairly compensate them for their work. The lawsuit is seeking class action status on behalf of workers who were similarly treated by TIGA. Attorneys for the five truckers who filed the lawsuit say the case could eventually involve up to 200 truckers.

According to the lawsuit, TIGA used a number of methods in order to allegedly cheat truckers who worked for the company out of fair compensation. The lawsuit alleges that the transportation company underpaid truckers and misrepresented the freight revenues used to calculate payouts to truckers. The truckers also allege that TIGA deducted unauthorized expenses, fees, or other charges from truckers, and kept money in escrow accounts that should have been part of the payouts.

An agreement between the truckers and TIGA stated that the company was supposed to pay drivers 70-75% of the freight revenue that it collected from the companies that hired them. The truckers allege that TIGA understated the revenue that it collected in order to avoid having to pay truckers the full amount they were owed. TIGA also prevented the truckers from being able to examine the company’s records in order to verify that they were being fairly paid, the lawsuit alleges.

TIGA also tried to charge the truckers additional fees that reduced the amount that they received from the company. The truckers who filed the lawsuit allege that TIGA added a 2% surcharge for all fuel expenses that were charged to company credit cards, and added a 10% fee for all non-fuel expenses paid to drivers.

The truckers also allege that TIGA held money in escrow accounts that had been paid by drivers for maintenance expenses, which kept them from being able to access the money. The lawsuit claims that when a trucker’s escrow account grew to a large sum, TIGA would terminate its contract with the driver, demand all equipment be returned, and withhold all of the escrow funds from the driver.

The drivers who filed the lawsuit against TIGA drove oil and gas tankers for petroleum companies that hired the transportation company. Most of the drivers employed by the company obtained their equipment directly from TIGA in what are known as “lease purchase agreements.” A Missouri group representing small business truckers known as the Owner-Operator Independent Drivers Association (OOIDA) discourages drivers from signing lease purchase agreements because of the number of complaints that it has received about them.

According to an OOIDA representative, many drivers who sign lease purchase agreements end up seeing a reduction in their work hours as they near the end of their lease contract for the truck. This can cause difficulty for the driver in making payments on the vehicle. When the driver defaults on the agreement, the company can reclaim the truck.

Unfair Compensation from an Employer? You May Qualify to File a Case.

Thousands of individual lawsuits and class action cases are filed every year by workers who allege that they were not properly compensated for their work. A federal law known as the Fair Labor Standards Act (“FLSA”) guarantees workers the right to fair compensation for their work, including a federal minimum wage and overtime benefits for non-exempt workers. Employees who have been wrongfully denied fair compensation under the FLSA may be eligible to file a lawsuit and receive compensation for unpaid overtime, tips, wages, and other costs. The first step in filing an FLSA lawsuit is to talk with a law firm with the experience and training to advise you regarding your legal rights.

The lawyers at Heygood, Orr & Pearson have filed lawsuits across the country on behalf of workers and other individuals who were harmed by the wrongful conduct of businesses or corporations. Our firm has handled class actions lawsuits or multi-district litigation cases (MDLs) involving commercial and other legal matters in Texas, California, and other jurisdictions across the U.S. Our attorneys have also filed hundreds of lawsuits on behalf of individual plaintiffs who were harmed by the negligence or other wrongful conduct of businesses or corporations.

Heygood, Orr & Pearson has the legal experience to guide our clients through complex litigation matters from beginning to end. Our law firm has the financial resources to stand toe-to-toe with some of the biggest corporations in the world on behalf of our clients, regardless of the length or complexity of the litigation process. In many instances, we have invested hundreds of thousands of dollars in a case in order to take it to trial on behalf of our clients. Our attorneys are committed to achieving justice for our clients, whatever the cost.

For a free legal consultation and to find out whether you may qualify to file a lawsuit regarding FLSA or other federal labor violations, contact us the lawyers at Heygood, Orr & Pearson by calling toll-free at 1-877-446-9001. You can also reach us by following the link to our free consultation form and answering a few simple questions to get started.