Trucker Misclassification Lawsuit Ends in $100 Million Settlement

After nine years of litigation, a trucker misclassification class action lawsuit against a major shipping company has finally yielded a $100 million settlement.

Representing approximately 20,000 long-haul truck drivers, the named plaintiffs claimed that their employer, Swift Transportation Company, Inc., wrongly classified them as “owner-operators” in order to avoid compliance with state and federal wage and hour regulations. The proposed settlement is now awaiting class certification and court approval.

Case Background

The original lawsuit was filed by lead plaintiffs Virginia V. and four others in December 2009. The complaint alleged that they had been misclassified as “independent contractors” rather than as employees.

The plaintiffs reported that as independent contractors, drivers were required to lease their own trucks from Swift’s own partner, Interstate Equipment Leasing (IEL). Drivers were also allegedly required to pay for maintenance and repairs and cover the costs of fuel, tolls, insurance and more–costs that the plaintiffs argued should have been reimbursed by the company. The end result was drivers making less than minimum wage in some instances, according to the plaintiffs.

Attempt to Force Arbitration Fails

In 2017, defendant Swift attempted to have the dispute resolved through arbitration, claiming that the drivers’ contracts contained a provision to that extent. The federal judge assigned to the case denied that request, ruling that the drivers were covered by “contracts of employment” that qualified for an exception to the Federal Arbitration Act. 

Senior U.S. District Judge John W. Sedwick determined that the drivers’ contractor agreements contained “terms and conditions of employment.” These conditions gave Swift and IEL greater control over how and when drivers carried out their duties.

The court noted that the agreements determined drivers’ load assignments, schedules and payment structures, limiting the autonomy that true independent contractors would have and hampering their ability to turn a profit. This, the judge said, was further indication of an employee-employer relationship.

Do You Have a Trucker Misclassification Case?

Independent contractors typically set their own hours and schedules (subject to federal transportation safety regulations), mileage and rates, do not answer to a supervisor, and are free to offer their services to any shipping company. Independent contractors must also cover their own expenses, such as fuel, road use taxes, insurance, etc., or build those expenses into their rates.

If you are subject to company schedules and rules, yet are not paid or reimbursed for job-related expenses, you may have grounds to file a trucker misclassification lawsuit. Your company may be in violation of the Fair Labor Standards Act, as well as state statutes that may be more stringent than those of the federal government.

The current Trucker Misclassification Class Action Lawsuit is Case Number 2:10-cv-00899 in the U.S. District Court for the District of Arizona.

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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