Christina Spicer  |  November 11, 2021

Category: Labor & Employment

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Trucker on the job

Recent complaints from truck drivers across the U.S., including those employed by USKO Express Inc., indicate that some trucking companies may be violating truck independent contractor rights by failing to compensate drivers for earned wages or by committing other wage violations.

What Do Truck Drivers Make?

There are more than 2 million truck drivers employed in the U.S., earning a median annual pay of $45,260, or $21.76 an hour, according to the U.S. Bureau of Labor Statistics.. However, truck drivers’ pay scales vary. Some companies pay by the hour or set an annual rate, but most pay per mile driven. Trucker pay may also depend on whether the trucker is classified as an employee or an independent driver.

How Have Truck Drivers Wages Changed Over the Years?

Truck driver wages have steadily decreased over the past four decades. Truck driver salaries have decreased by an average of 21% since 1980, according to Business Insider, with some wages plummeting as much as 50%. This may be partly due to ways the trucking industry has been regulated and deregulated over the years, affecting truck driver employee rights.

Trucking industry regulations began in the 1930s with a 1935 law limiting the number of new truckers or trucking companies that could enter the industry. Other laws required trucking companies to post their rates a month before going into effect, allowing competitors to potentially undercut one another to gain a greater share of the market. Trucking industry regulations resulted in inflated prices for many types of goods.

In 1980, the Motor Carrier Act was passed. This law removed many of the previous regulations, allowing new trucking companies to open and to have more control over their rates. However, the act also resulted in the industry becoming much more competitive. This cutthroat competition caused a decline in truckers’ wages and working conditions. University of Pennsylvania sociologist Steve Viscelli has described the type of competition found in the trucking industry as “destructive competition,” or “competition so severe that it undermines profitability to the point that it causes underinvestment by firms, industry-wide inefficiency, market instability, and poor service quality.”

A current issue facing California truck drivers is Assembly Bill 5, or AB5, which requires companies to reclassify independent contractors as employees, with some exceptions. This bill is targeted at major gig companies, which rely on millions of independent contractors with no guarantee for minimum wage, overtime, benefits, and worker protections. AB5 establishes a three-part test to determine whether a worker is an independent contractor or an employee.

AB5 went into effect on Jan. 1, 2020, but major gig companies Uber and Lyft have resisted the requirement. On Aug. 10, they were ordered to comply with the law by reclassifying drivers. Uber and Lyft appealed, and a stay was granted, allowing the ride share services to continue operating as they had before the law passed. But in October, a California appeals court ruled there is an “overwhelming likelihood” that Uber and Lyft violated labor law by misclassifying drivers.

AB5 also has the ability to affect truckers, who are commonly classified by the companies they drive for as independent contractors, which in some cases may be a misclassification, ultimately denying these truckers the wages and benefits they deserve.

New California Labor Law Passed

The election of 2020 ushered in a new labor law in California meant to temper the effects of AB 5. Freight Waves reports that Proposition 22, a law that will exempt app-based drivers from many of AB 5’s requirements, passed with 58% of the vote.

While Freight Waves notes that the passage of Prop 22 will not have an immediate affect on trucking with ISKO Express Inc. or other California company, it may speak to current court cases considering the definition of independent contractor in the trucking context. Currently, the trucking industry is reportedly exempt from AB 5 under a preliminary injunction issued until a federal appeals court considers the matter.

Prop 22 was funded by Uber, Lyft, and DoorDash to the tune of millions. Freight Waves reports that it was the most ever spent on a ballet proposition in the state. Under Prop 22, drivers for the ride share companies will not be deemed employees, as a recent court order mandated, but will be entitled to a limited number of benefits, including something like a minimum wage, health care stipends, and insurance.

The measure was opposed by labor advocacy groups, including the California Labor Federation, notes Freight Waves. The group stated that the proposition “threatens good, middle-class union jobs. If these companies succeed in buying this election, their low-pay, no-protection business model will expand in virtually every industry, leading to unprecedented job loss and a race to the bottom,” on its website.

Although a short term injunction prevented AB5 from being applied to trucking companies, an appellate court reversed this injunction. This means that, going forwards, companies may be forced to comply with AB5 by paying their truckers employee wages.

Semis getting loadedHow Could Trucking Companies Be Underpaying Employees?

A common complaint from truckers is that they are not paid for time spent waiting for their rigs to be loaded or unloaded. This wait time is referred to as “detention time,” and could cost individual truckers thousands of dollars each year.

Wait times typically occur due to warehouse disorganization that results in shipments not being ready on time or too few workers to load and unload the trucks. These inefficiencies often result in truckers spending hours waiting at shipping docks.

According to a 2018 study, more than 60% of truckers reported spending at least three hours each time they were at a shipping dock. Although truck drivers are often supposed to be compensated for these wait times, many say they are wary of asking employers for it. Truckers who work at smaller companies may want to remain competitive and hireable, in addition to maintaining a good relationship with their employer.

According to a 2018 survey, however, approximately 71% of truckers who ask for detention pay receive it. Unfortunately, even truckers who receive detention pay claim that the amount is far less than the wages they lose by spending hours waiting at shipping docks.

Could USKO Express Inc. Drivers be Owed More Pay?

If you drive for USKO Express, you may be owed additional pay. USKO Express Inc. is a California-based trucking company that has been in business for 12 years. The company claims to have carried 65,500 loads across 28 million miles.

There is no clear evidence that USKO Express Inc. is underpaying truckers or denying them their earned wages, however, many trucking companies engage in this practice. If you have been denied detention pay or other wages by USKO Express Inc. or another trucking company, you may be eligible to speak with a wage violation lawyer about your legal options. Some truckers who have been denied pay may be able to file or join a class action lawsuit against the trucking company committing violations.

Additionally, if you work or have worked as a truck driver and you believe the company denied you your proper pay, such as minimum wage or overtime, you may be able to file a lawsuit and pursue compensation.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

You may qualify for legal help through this investigation under the following circumstances:

  • You worked as a independent contractor driver in California;
  • You live in California OR you drive through California;
  • You believe you were underpaid; and/or
  • The trucking company failed to honor a contract with you.

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