US-based KBR, a global engineering, construction and services company, and its affiliate, Services Employees International, won an action arbitration alleging that the company had underpaid thousands of truck drivers supporting the military effort in Iraq.

The ruling, issued by Arbitrator Michael Loeb, Esq, acknowledges KBR routinely, and properly, enforced its written timekeeping policy whereby employees “record all time worked, and work all time recorded.”  Despite the various allegations asserted, the payroll records made it clear that there was no class-wide policy to require under-reporting of hours worked, the ruling said.

The arbitration was filed in November 2007, and Arbitrator Loeb certified a class of approximately 7,000 current and former truck drivers in 2011.

The plaintiffs alleged that between 2003 and 2010, KBR maintained a policy to deny truck drivers stationed in Iraq compensation for all overtime hours worked.  The arbitration hearing took place in September and October of last year with closing arguments in February of this year.

“KBR is pleased, but not surprised, by the decision,” said Andrew Farley, KBR executive vice president and general counsel.

“This ruling confirms that KBR’s policy and practice was to require accurate time recording and pay these drivers for all hours actually worked.” – TradeArabia News Service