Tow Company Pays for Violating Fair Labor Standards Act

Chicago Tow Company, ACD Emergency Road Services LLC, violated the Fair Labor Standards Act by misclassifying hourly workers as independent contractors instead of employees and subsequently failed to pay them minimum wage or overtime according to investigators from the U.S. Department of Labor. 

Minimum wage violations resulted from the employer’s practice of making illegal deductions from workers’ wages for vehicle damages, traffic tickets, uniforms and even for failing to give a “timely” resignation notice. Investigators also found that ACD paid its hourly employees “straight time” for all the hours they worked. By doing so, the employer violated overtime regulations when employees worked more than 40 hours in a workweek. 

ACD owners Camara Bowden and Dantea Grayson paid $166,030 in unpaid overtime and minimum wages and interest to 56 workers as part of a consent judgment entered in U.S. District Court in Chicago on June 21, 2021. They also agreed to comply with the FLSA in the future. 

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