A $4.75 million settlement is in the works between P.A.M. Transport Inc. and nearly 8,000 truckers who claim the trucking and logistics company failed to pay them properly for overtime and made improper payroll deductions.
According to a brief filed in the United States District Court for the Western District of Arkansas earlier this month outlining the settlement in the class action suit, P.A.M. agreed to pay the money to truckers for claims incurred between Jan. 1, 2020 and July 31, 2022. It notes the trucking company failed to pay over-the-road employees minimum wage for all hours worked; made unlawful deductions for their paychecks through an "escrow" account; and applied "usurious" interest on employee advances. The allegations violate Arkansas and federal law, according to the filing.
P.A.M. officials did not respond Wednesday to a phone message and an email seeking comment.
As part of the settlement P.A.M. agreed to modify certain payroll and advance policies so the truckers won't be subject to deductions for escrow amounts or be charged for requesting advances on wages. As part of the deal, P.A.M. said it has no plans to reinstate similar policies in the future, according to the filing.
The suit was filed in early August 2021 and the class action covers 7,965 truck drivers. According to documents an attempt at mediation in January failed.
The settlement must still be approved by Judge P.K. Holmes III.
Shares of P.A.M. Transportation Services closed at $33.16, down 37 cents or about 1% in trading Wednesday on the Nasdaq. Shares have traded as low as $16.21 and as high as $40.88 over the past year.