TIGA Logistics Sued Over Alleged Compensatory Errors
There have been a number of instances reported recently of trucking companies facing legal action by drivers. These drivers claim they were mistreated – more specifically, these lawsuits deal with truckers who claim they were not compensated fairly or correctly according to their employment status. TIGA Logistics, LLC, is the most recent organization to come under scrutiny.
Five trucks sued the company, claiming that they were cheated out of due compensation for work performed. A class-action suit may represent as many as 200 truckers according to Reagan Pratt who filed the suit last week in Bexar County district court. The root cause of the issue stems from the company misrepresenting the freight revenues used to calculate pay-outs.
The suit also alleges that the organization further reduced the drivers’ earnings by deducting unauthorized expenses and charges which were not previously agreed to. In addition to this, they’ve been accused of keeping money from escrow accounts that should have been returned. TIGA was contacted, but did not return calls or an email Thursday.
The drivers, who worked as contractors, did oil and gas transport work for drillers. In most instances, drivers used equipment which was obtained from TIGA via lease or lengthy contracts. These types of lease-purchase agreements have led to many complaints and issues of this type. The problem has become so severe that the Owner-Operator Independent Drivers Association discourages small-business truckers from signing them.
When an organization owns a person’s equipment, they can dictate how much work that person gets. This means that truckers can be given less work toward the end of a contract, resulting in fewer loads and less money. This can result in the driving having to default and thus losing the equipment. The case seeks unspecified damages both actual and punitive. It also seeks the return of funds from the drivers’ escrow funds and any profits earned from them.