- 62 -62 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 clientsPage: Previous 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Next
Last modified: May 25, 2011