California Port Drivers Due $6 Million After Independent Contractor Trucking Misclassification

California port truck drivers were recently awarded close to $6 million in a misclassification lawsuit disputing the use of independent contractor trucking.

The California Labor Commissioner said 24 truckers employed by California Cartage Express were owed the money because of wage theft caused by misclassification of independent contractors. The Labor Commissioner made history by issuing individual joint liability against one of the company managers, who supervised the day to day operations of the drivers.

California Cartage Express, owned by National Freight Industries’ (NFI), is the biggest mover of retail goods at the ports of Los Angeles and Long Beach. NFI of New Jersey bought Cal Cartage in October 2017.

The individual liability determination was an application of a new provision in California Senate Bill 588, which has never before been applied in a port trucking case. SB 588 makes it mandatory for a business to post a bond when the business has an unpaid wage judgement against it. Without posting that bond, the Labor Commissioner can place a wage lien upon the company, essentially closing the business until the bond is paid.

California’s SB 588 also prevents companies from using subcontracts and blurred reporting hierarchies to intentionally cause problems enforcing labor laws. The law holds individuals who are involved in the wage theft to be brought accountable for their part in the scheme.

California Cracks Down on Independent Contractor Trucking

California port truck drivers are getting some assistance from the Teamsters Union and other labor and community groups who wish to see the 75,000-plus port drivers reclassified as employees.

The Harbor Trucking Association, which represents port trucking companies, told Heavy Duty Trucking magazine that many truck drivers wish to remain independent contractors and are not seeking employment status.

California recognizes that independent contractor trucking is common across the U.S., but the state has a history of ruling that truck drivers are employees who have been misclassified in an effort by a business to keep from paying appropriate wages and benefits.

Port truckers who are independent contractors may find it difficult to make a livable wage because of expenses that include:

• Fuel
• Fuel taxes
• Insurance
• Truck purchase or lease
• Licensing fees
• Equipment maintenance

When these costs and the number of hours worked are taken into account, many truck drivers say they don’t even make minimum wage.

The state of California Department of Industrial Relations has established criteria to help determine whether a worker is an employee or an independent contractor. Among the factors that come into the equation are:

• How much control the business has over the worker regarding the work done and the way it is performed;
• Whether the worker performs services that are apart from the company’s line of business;
• Whether the business or the worker supplies the items necessary and the place for completing the work;
• The worker’s financial investment in equipment and/or the worker’s employment of others to complete the work;
• Whether special skills are required;
• The type of job and whether the work is completed under the direction of the business or by specialist without supervision;
• The worker’s opportunity for profit or loss depending upon managerial skills;
• The amount of time the services are needed;
• Whether or not there is a permanence of the working relationship
• Whether the job is paid by time worked or by the job;
• Whether the worker and the business believes they are in an employer-employee relationship might have some weight, but is not a question used to determine the answer because of its objectivity.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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