Approximately 10 employees drive company vehicles, pick-up, stake and dump trucks. We are not paid for our drive time. We are told to be at the yard at 5:45am, or earlier if the job is far away, to load our trucks. After the shift is over, we drive back to the yard and unload. For all of this time we are paid $20.00. The company calls it a per diem. There are days that we work 12hours but only get paid for 8 hours plus the $20.00. When anyone has complained, they are told that we are not actually working so we are not entitled to our hourly wage or that the company can find someone to replace us. Is what they are doing legal and if not, what can we do?
Any help will be greatly appreciated.
Thank you.

Here's the deal, while the "drive time" is work time, it may be paid at a different rate than the other work that you do. The law does not require that all the hours you work be paid at the same rate so long as you are making at least minimum wage. Unless you are driving more than 3 hours and 53 minutes a day, they meet that requirement.

Right. Let's say for example, you actually work 50 hours in the workweek, your hourly rate is $10.00, plus you drive 3 hours each day, for which you receive $20 per day. Here is the minimum gross pay you must be paid under the Fair Labor Standards Act.

Total hours worked 50 + (3 * 5) = 65 hours
$10 * 50 hours = $500
$20* 5 days = $100
Regular rate of pay = $9.23/hour ($600 / 65 hours) Note: If this calculation results in a rate of less than $5.15, then the employer must make up the difference in gross pay
Overtime 25 hours * ($9.23 * .5)-(premium portion of overtime; the straight time portion is already included in the $600) = $115.38

Total Pay Due $600 + $115.38 = $715.38

Thank you both for your answers, they were very helpful.
Me:D

The drive-time that I asked you about earlier was before and after our regular shift, which is either 8 or 10 hours. Our union contract states that anything over 8 hours is overtime. Would this be considered overtime? and if so, should we be paid our regular wage or minimum wage? Do you think that this should be brought to the Union's attention?
Thank you.
Steve

The drive time from home to your first worksite and the drive time from your last worksite to home is not compensable. Drive time between worksites is compensable. Which portion of the day are you specifically inquiring about?

If the union contract says it's overtime, it's overtime, even if it wouldn't be under Michigan law, and it wouldn't, as Michigan doesn't require daily overtime. Does the union contract state the RATE at which this overtime must be paid, however? Does the contract provide for different "overtime" rates depending on what work is being done during the overtime hours?

There is no harm in bringing it to the union's attention. Worst that will happen is the union will tell you that you are mistaken and the current practice is allowed.

Thanks for all the help.
The drive time is from the company shop to the job site. We meet at the shop at 5:45am and load the company trucks and then drive them to the job sites where we meet with the other employees and we stay there and work untill our shift is over, then we drive our trucks back to the shop. There are days that I have worked 12 to 14 hours but was paid for only 8 straight plus $20.00 "drive time". We are classified as either cement finishers or cement laborers and are supposed to get our regular wage whatever we do. We are also supposed to get time and a-half after 8 hours and double time after 10 hours.
Thanks again.
Steve

I think we had the details the first time. :) The legal answer is the one I already gave you. If the pay practices are noncompliant with the union contract, then the union should be grieving this with the employer. It's a contract issue, not a wage and hour law issue.