C.R. England Agrees to $18.6M Settlement in Truck Driver Class Action Suit

A federal judge in Utah signed off on an $18.6 million settlement in a class action lawsuit concerning allegations raised by a group of truck drivers that their employer, C.R. England engaged in an alleged scheme that violated state wage laws.

United States District Judge David Nuffer signed the order on Nov. 20, 2020, concluding a four-year litigation that commenced in February 2016. Judge Nuffer wrote that “The resolution of this Action was not hasty or achieved in a rushed fashion; this Settlement was instead the product of a long, ground-out process.”

The suit was initially filed by Milton H. in a California state court and subsequently removed to a California federal court. The suit later joined the three other named plaintiffs, William G., Ronnie S., and Jonathan M., consolidating two suits. Due to a mandatory forum selection clause, the case was transferred to the District of Utah.

The class action lawsuit was commenced over allegations the C.R. England failed to provide truck drivers with minimum wage, overtime wages, itemized wage statements, reimbursement for business expenses, timely pay upon termination, and meal and rest breaks required by California labor law, as well as other wage violations.

The complaint also raised claims that C.R. England had a policy requiring truck drivers to pay for tuition at the company’s driving school, effectively compelling them to buy a nine-month employment opportunity. According to the class, the tuition for the company’s “Premier Truck Driving School” was in excess of $5,000 with usurious interest rates of 18% added on, with these charges being deducted from the truck drivers’ wages.

The truck drivers further argued that C.R. England made false representations that the company would pay for the training course at the end of the nine-month term and that the drivers could only be terminated for cause. However, according to the complaint, at least one truck driver was fired before the end of the nine-month term and was required by the company to repay the principle of the driving school loan, along with interest.

According to Law360, C.R. England told the publication that it “completely refutes the allegations.”

A motion for preliminary approval of the settlement was filed in February 2020, following extensive negotiations and mediation. In their motion asking the court for preliminary approval, counsel for the class stated that the settlement “is an excellent result for the Class Members in light of the serious disputes as to the merits of their claims, uncertainty as to whether class certification could be obtained, the fact that almost all Class Members agreed to individual arbitration agreements with class action waivers, and numerous other factors.”

Eight class members opted out of the class action and one objected to the settlement at the fairness hearing held Oct. 26, 2020, arguing that it was inadequate. As a result of the raised objection, C.R. England agreed to add $53,224.21 to the settlement to be paid to 126 class members for the interest incurred on their loan balances and liquidated damages, despite maintaining it was not necessary.

Judge Nuffer approved the settlement over the objection, finding that the settlement would have been reasonable and fair without the added payment. He wrote that the court accepted the company’s offer to pay additional compensation “to eviscerate any theoretical concern raised” by the objector.

The C.R. England Lawsuit Settlement Terms

Covering a six-year period of employment from March 2014 to April 2020, the class action settlement entered into between C.R. England and the class applies to 12,802 truck drivers.

According to the terms, the $18.6 million settlement would allot $3.6 million to the class members, including debt forgiveness amounting to more than $15 million, and the additional payment that would be distributed among the class members who provided the company with payments that exceeded their tuition loan balance principle.

The class action settlement provides for $1.44 million in attorney fees, representing 7.74% of the gross settlement, an amount “well below the ‘benchmark'” Judge Nuffer wrote, finding that the proposed attorneys’ fees were appropriate.

Judge Nuffer also approved settlement administration costs in the amount of $74,146.00.

The class representatives each receive $12,000 as service payment.

What are the California Wage Laws Raised in the Class Action?

California has a number of labor laws in place to help ensure employees receive the wages they are entitled from their employers.

Employees must be provided with overtime pay of one and a half times the regular pay rate for all time worked after eight hours in a day, and double time if they work more than twelve hours. They must also provide employees with reimbursement for business related expenses they incurred during the course of their employment and disburse final wages promptly if an employee is discharged or voluntarily terminates their employment.

Additionally, workers are entitled to meal and rest breaks during their shifts — for the first five hours worked, an employee is entitled to a 30-minute meal break unless they don’t work more than six hours. If they work more than ten, they are entitled to a second 30-minute break. During meal breaks, employees must be relieved of all their work-related duties.

The C.R. England Truck Driver class action lawsuit is Case No. 2:16-cv-00768, in the U.S. District Court for the District of Utah.

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• 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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