Carrier ordered by labor department to pay $2 million in pension to 515 drivers

Federal officials recently ordered a California carrier to return nearly $2 million benefits to 515 drivers.

On Jan. 14, the U.S. Department of Labor’s Wage and Hour Division announced 401(k) pension benefits would be restored to drivers for Lange Trucking Inc. on U.S. Postal Service contracts. The Oakland-based company and five of its officers will be ineligible for service contracts with agencies for three years because of the violation. 

Investigators found that Lange had not fully funded the drivers’ plan and had undergone past investigations. The carrier paid $500,000 of the unpaid benefits before the Minnesota-based Hoovestol acquired the company after the violations. 

Hoovestol voluntarily agreed to fund the remaining $1.48 million in benefits. The new owners also corrected record keeping procedures, overhauled the plan, posted wage determinations at the work site and made contract information accessible to employees.

The  company did not respond immediately to a request for comment. 

Editor’s note: This story originally said the company was ordered to pay $2 billion in benefits, instead of $2 million.