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Court finds Minneapolis company’s workers were not independent contractors

June 28, 2023

A nonemergency medical transportation provider in Eden Prairie, Minneapolis, will pay $254,628 in back wages and liquidated damages to 21 drivers after misclassifying them as independent contractors, the US Department of Labor announced Tuesday. The payment is required by court order issued following a five-day jury trial in Minneapolis that ended June 16. Jurors found the drivers in this case to be employees and not independent contractors.

The judgement was the latest step in an effort to recover wages from the company — Alpha & Omega USA Inc. (operating as Travelon Transportation) — and owner Viktor Cernatinskij, according to the Department of Labor.

Initially, an investigation of the company found it failed to pay some drivers for weeks they drove; made unauthorized deductions from wages for van leasing, insurance, maintenance, dispatch and use of a tablet; failed to pay overtime; and did not keep accurate records of hours worked.

After the investigation, the case went to court and workers were awarded back wages and damages in a 2021 summary judgement, according to the department. Travelon appealed that decision, and the 8th Circuit Court of Appeals reversed the earlier judgment and remanded the case for trial.

In addition to paying wages and damages, this week’s court ruling forbids the employers from future Fair Labor Standards Act violations.