A logistics company used a subcontractor to deliver packages. The contract company owned the vehicles used by
Question:
A logistics company used a subcontractor to deliver packages. The contract company owned the vehicles used by drivers to deliver packages, while the logistics firm owned the warehouse facilities and all other equipment. Drivers were hired and paid by the contract company. Every morning, the logistics company had packages delivered to one of its warehouses. Drivers could not begin work until the logistics company informed them that their packages had been received, coded, and were ready for pickup. After receiving the go-ahead, drivers sorted, scanned, and loaded the packages. The contract company leased the scanners from the logistics company. As drivers loaded their vehicles at the warehouse, a logistics company employee would often inspect the vehicles and drivers’ uniforms to ensure that they conformed to the standards specified in the company’s agreement with the contractor. The uniforms and the vehicles bore the names of both companies. Drivers spent the majority of their days making pickups and deliveries. Throughout the day, the logistics firm sent information regarding customer complaints, requests for re-deliveries, and other nonroutine matters to drivers. Using scanners, drivers logged the time at which each package was picked up or delivered. When drivers finished their delivery routes for the day, they unloaded any remaining packages at one of the warehouses and returned their scanners to be charged overnight. The information that the scanners had collected during the day about package locations was transmitted to a data server of the logistics company. The drivers allege that they were improperly denied overtime pay. Is the logistics company a joint employer potentially liable for wage and hour violations? Why or why not?
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