Former Midwest Logistics employees say company paychecks bounced, banks refused to cash them

Six more former employees of Midwest Logistics in North Liberty have come forward to say the company owes them money.

"They told us that they didn't have the money. They told us their customers were taking so long to pay them, so they couldn't pay us," said John Rohleder, who worked for the company for nearly 7 1/2 years. Rohleder said he had no problems with the company until last year, when the company changed the way it paid employees.

"Basically after they stopped doing direct deposit, they started giving us checks. I've had three checks bounce," said Rohleder, who said several banks refused to cash checks from Midwest Logistics.

Rohleder said after the company went to a system of paper checks, the pay periods then also changed. Instead of getting paid once a week, workers sometimes had to wait an extra week or more.

Rohleder said he was a salaried employee, but was told by the company they were going to a system of paying him per mile.
He said he almost lost his house because he got behind on payments.

Rohleder quit the company on February 27 and showed NewsCenter16 a paycheck he received nearly a month later, dated March 20, for work he did during the first two weeks of February.

Midwest logistics told NewsCenter 16 that they do not have any payroll issues and any employees who've experienced a delay in checks should contact them, but the former employees said they tried.

"Right up until I talked to a lawyer and sent them a letter, I contacted them almost every day," said Rohleder.

"They won't talk to nobody. For the past year, they pretty much hid away," said Mark Morgan, who also worked for the company more than seven years.

Morgan says he quit, because bounced checks has caused him to fall behind on his bills.

"I've had three or four [bounced checks.] During christmas this past year, I had three in a row," said Morgan. "You never knew when you were going to get paid--Tuesday, second week of the month or when, you had no idea."

Morgan said he's now in legal trouble, because the company was responsible for paying his child support, which is about seven weeks behind.

He said he's had to take out loans to cover checks that bounced, and the company still owes him more than $1600.

"It's hard to bounce back and catch your bills up," said Morgan.

An employee, who did not wish to be named, told NewsCenter 16 that the company has reduced the number of its drivers frmo 85 to 25.

NewsCenter16 contacted the company several times for commment. Wendy Fredericks, one of Midwest Logistics owners, said she would return our calls at a later time, but has not as of the publication of this article.

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