Menards runs afoul of the feds (again) for mistreating its truckers
Menards truckers arent technically employees. Theyre independent contractors, a designation that allows Menards to avoid paying for their healthcare or any other benefits.
But while Menards doesn't offer the benefits of employment, it doesn't short all the restrictions. The truckers arent allowed to haul for competitors for up to a year after ending their contract. If they turn down a job because the compensation isnt worth the time and the gas, theyre never given more work. And theyre forced to sign away the right to participate in class-action lawsuits.
They work when Menards wants them to work, says Seth Goldstein of the Office and Professional Employees International Union. They have to buy a special truck that Menards has designed, so once theyre done with these trucks, theyre worthless. They basically dont have any of the benefits of being an employee, but they have all the control aspects.
Last week the National Labor Relations Board weighed testimony from both truckers and the company to conclude that the Eau Claire home improvement chain had again violated labor law by misclassifying its drivers. In short, it was paying them like contractors, but treating them like employees. (Menards ran afoul of the feds last year for making people sign mandatory arbitration agreements as a term of employment.)
Read more: http://www.citypages.com/news/menards-runs-afoul-of-the-feds-again-for-mistreating-its-truckers/408547705