An employee-based lawsuit can destroy a company. The management goes into bunker mode, chauffeurs choose sides, affidavits are signed, and animosity grows. It’s miserable.
In the end, everyone loses except the lawyers.
Unfortunately, most employers don’t realize until after the fact that a lawsuit could’ve been prevented. The key to avoiding or at least defending a lawsuit is to establish proper employment practices and procedures.
- Pay Gap & Setup Time – Most transportation lawsuits revolve around this issue. A chauffeur should be paid from the time he picks up a car until the time he drops it off. Chauffeurs should also be paid for gaps in between runs. In addition, a chauffeur should be compensated for car washes and setup time. This precedent was established with prince v CLS Transportation.
- Use “Independent” IOs – An independent operator should actually be “independent.” This means the chauffeur owns or leases the car, carries his own insurance, pays for gas, and is independently licensed by the state. Lawsuits arise when IOs are forced to pay the company workman’s compensation or other employee based fees.
- Don’t be a Jerk – Most class-action lawsuits aren’t based on greed. They’re based on deep-seeded chauffeur resentment and hatred towards managers and owners. When a class-action settlement is divvied up, the payouts are laughable. Chauffeurs pursue lawsuits because they want to hurt the company.
- Document Everything – It’s vital to document employee infractions and keep personnel files. If a chauffeur is terminated, a paper trail should support the dismissal.
- Don’t Retaliate – Even if an employee files a labor board complaint, don’t retaliate. This only opens you to a serious retaliation claim.
- Record Everything – Every call should be recorded. When a chauffeur has an issue, dispatch should resolve the problem on a monitored land line. If necessary, a manager can review the disagreement.
- Use a DriveCam – DriveCams help with two important legal problems. First, they keep small fender benders from turning in to personal injury lawsuits. Second, they create a permanent record of reckless driving. All incidents should be downloaded and put in the chauffeurs personnel file.
- Use an Employee Handbook – A fixed set of standards should be established for all chauffeurs. The handbook should include all matters of decorum, appearance, and behavior. Chauffeurs should be regularly evaluated based on expectations set in the handbook. If a grievance arises, consistent evaluations are the foundation of a strong defense.
Wrap Up
The limousine business is tough. Most operators don’t make it past 5 years. The long hours, lousy clients, and cut-throat rates humble the best of businessmen. An employee-based lawsuit only makes it worse.
Luckily, chauffeurs rarely file lawsuits. By their nature, chauffeurs put up with a lot of B.S. and are largely transient. Unless they’re emotionally invested, chauffeurs will simply move on to a better company.
Unfortunately, it only takes one angry and resentful employee to destroy a company. Do you really want to take that chance? If it can happen to Bell and CLS, it can certainly happen to you.
It would benefit both employees and employers to abide by the advice laid down by the author. Most of the problems seem to derive from money, that employers foolishly want to keep to themselves, instead of sharing a little more of the wealth with those who make it for them. Both would benefit, with attitudes and moral improving dramatically to the satisfaction of all. It makes good business sense.
a happy employee = no problums for the companey and a unhappy employee can be a problum
Considering that labor law, especially in California is very clear about when a Chauffeur is on duty and to be paid, “When an employee is under the control of the employer.”, the owner’s attitude seems to be, “Sue me.” They see lawsuits as a cost of doing business for a while. And they usually settle for much less then is actually owed. Diva Limousine is the latest large limo service to settle their wage and hour class action. This is years after Music Express and BLS where also forced to put their chauffeurs on the clock. It is high time that the wage and hour abuses by limo companies come to and end.
Actually, part of the problem is the fact that labor law isn’t clear when it comes to car service. Car service is a relatively new concept (last 25 years) and most transportation labor law is directed towards cabs and charter buses. Fortunately, a fair amount of case law now exists, but a lawsuit must be filed to enforce it.
Dave I was recently asked to step into a chauffeurs management position,after driving for two years . Any advice?
To Ray,
Obviously David M. is not a lawyer. Labor law applies to all types of businessess, from limo services to restaurants. If a company hires an “employee”, then the law covers that employer-employee relationship. It doesn’t matter what kind of business is being run. Even the porn industry has to abide by CAL-OSHA standards for exposing an “employee” to bodily fluids.
As for your question about moving into a management position after driving. The main thing is to be fair to your drivers. I’ve been employed at BLS, Music Express and Diva Limousine and worked with absolutely INCOMPETENT CHAUFFEUR MANAGERS that where moved up from Chauffeur positions. They lacked the following skills: TIME MANAGEMENT – They would assign day drivers to drive at night. And night drivers to drive during the day. I’ve done both shifts and they are 2 different animals. As a manager you have to know your chauffeur’s personalities. Do not expect a morning guy to get into a stretch at 9 p.m. and stay out until 6 a.m. And do not expect a night guy to sleep 2 hours and get up at 4 a.m. for a 6 a.m. You are asking for disaster. INTERPORSONAL SKILLS – A chauffeur is your money maker. You always talk to him/her with respect. Do not take anything personally. I’ve had idiot managers retaliate against me for taking my scheduled day off when the company was busy. FOLLOW THROUGH – If you become aware of a problem, then you have to spend the time finding out why it happened. Dirty cars brought back by the same driver. Un-gassed cars brought back by the same driver. You have to be a detective and spend time on a small problem before it becomes a big problem. RESPECT YOUR EMPLOYEES – Balance the work among chauffeurs. They talk to each other and know who’s getting hours and who is not.
Believe me, if you are not fair to your employees, they will take it out on the company. I know that Diva Limousine was having tires slashed at LAX in the parking lots by a disgruntled employee who knew their schedule and habits.
Good luck.
Bob