Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 62

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          funds to pay TLC’s payroll obligation, the exclusive lease                  
          agreement required each trucking company client to pay a $650               
          deposit to TLC, an amount TLC intended to approximate TLC’s                 
          payroll obligation for each driver-employee for one week.                   
               Respondent counters that “the source of the funds used by              
          the Trucking Companies to pay TLC” is irrelevant because “Solvent           
          businesses necessarily pay recurring expenses out of income.”               
          According to respondent, what is relevant is that “there was no             
          escrow or reimbursement arrangement, only the payment of a flat             
          fee.”                                                                       
               We have found that, for each payroll period with respect to            
          each driver-employee, TLC was obligated to, and did, pay such               
          driver-employee his or her net wages and any per diem amounts,              
          regardless of whether the trucking company client to which TLC              
          leased such driver-employee paid TLC the lease fee.  We have also           
          found that each payroll period each trucking company client paid            
          TLC a lease fee that was not broken down into component parts,              
          which TLC used to cover its costs and generate a profit.  The               
          method by which each trucking company client paid TLC the lease             
          fee to compensate TLC for leasing driver-employees to such                  
          trucking company client is not a factor indicating that each                
          trucking company client, and not TLC, was the employer of the               
          driver-employees whom it leased from TLC.  It is common business            
          practice for a business to use moneys received from its clients             






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Last modified: May 25, 2011