Illegal or just immoral?
I am wondering if this is an illegal act or just incredibly immoral. If it is illegal, is it worth fighting? Or is this common and one of those just suck it up and deal things (highly doubtful).
Thank you in advance for your help!
We live in Utah.
Shortish version:
My man recently got his CDL. He was then hired by a local company. They went through the entire process of hiring him, social security card, drug test, medical exam, etc.
When he went into the office for his first day he was forced to sign a “contract” or leave, in that contract it states he is not an employee and this is for “education”. Until after he passes their testing.
Our biggest issue, they are ONLY paying him per diem. No base wage. No hourly pay, no overtime pay, no mileage pay. Nothing except per diem. They also state that the per diem is only valid if he is driving for at least 8 hours in a 24 hr period.
It’s been about 7 weeks now, he was supposed to be able to test this week but they just extended his “education” time by an additional 60 days. He feels like he is ready to test now. We both feel that he is being taken advantage of.
From my understanding isn’t it legally required to pay employees for “on the job training”? Which this is, they are just calling it “education”.
The extra details and questions:
My understanding is that per diem isn’t a wage. Is that going to mess up his taxes?
I’m not familiar with the trucking industry, is it common to not get per diem (long haul trucking) if you drive under 8 hrs in a 24 hr period because your partner drove or because you were waiting with a load overnight? Or is per diem paid if you’re out of your home area (by a certain distance) everyday?
This “contract” is all over the place and contradicts itself more than once. There are grammar issues, and spelling issues, (I’m not the best at either, so that says a lot that I easily noticed) there is also manipulation and intimidation.
It also never names the company, It does have the company logo at the top of each page, but instead of names we have “company” and trainee. it doesn’t have his name except on the signature lines where he wrote it in.
It is titled “Trainee Contract” Wouldn’t it be “student” if this is a school? :)
This started because he responded to a job ad, he interviewed for a job, he was hired for the job that he is being trained for.
When THEY say he is ready they will test him, and then move him out of “education”, give him a truck, and his own route.
The document also includes the companies policies and procedures. Another “employee” related thing.
There are a few times that they have added stuff that feels like they think just because it’s in there and it’s signed it makes it legal.
Example:
“The Company (they didn’t even put their name here) retains exclusive rights to interpret and apply the terms contained in this document”
This part made me laugh, I feel like they know they are breaking the law, but they think they are being sneaky about it by adding this clause.
indemnification and hold harmless clause:
“The Trainee agrees that if they breech any agreement, representation or warranty the Trainee has made in this contract. The Trainee agrees to indemnify and hold harmless the company, and its directors, officers, employees, shareholders, financial advisers, attorneys, and accountants against any claim, liability, loss, damage, or expense (including, without limitation,attorneys fees, and other costs of investigating and litigating claims) caused directly or indirectly by the breech. “
Aren’t most contracts more equal, where both parties would be held to a breach of contract.
One question I do have, does stuff like this hold up in court? Yes he did sign it, but does the law supersede his signature? Especially since it’s labor law related? Or is it one of those, if it’s signed, you’re SOL.
The per diem amount was also handwritten. No way to know if it is fair and consistent across the company as required. The rest of the document was printed.
Another issue, even though he was on the road and away from home, they aren’t giving him the per diem for all of the days. It’s off by a good amount. We are going through all the records to see just how much. Is this a normal practice?
Another thing that doesn’t make sense to me. He did the first 6 weeks (came home a few times for a night) long haul, the last week he was local, but per diem is only supposed to be for over the road.
Side note, he has been doing most of the driving with his team mate/trainer.
I did try to do my own research before coming here, and from all I can see it looks like this is illegal, and they aren’t the first company to pull this scam. I just don’t know if it’s worth fighting, or if it is in fact legal but a grey area.
Thank you again!