Judge Rejects Proposed Truck Driver Lawsuit Settlement

A federal judge has rejected a $7 million settlement proposal to resolve claims that Kansas-based transportation company Renzenberger Inc. failed to pay minimum wage and offer rest breaks to its truck drivers, both violations of California labor laws, according to Law360.

The truck driver plaintiffs are alleging wage and hour violations by Renzenberger, a railway transport services company whose fleet includes 1,800 vehicles operating in 34 states, according to Wikipedia.

A Renzenberger truck driver, as well as drivers for other company vehicles, is to transport railway workers to and from trains and stops  where they are relieved by the oncoming shift. Railway workers include the train engineers and conductors who are moved to a local hotel or railway yard.

The judge also denied a $4.5 million deal reached by both parties in November 2018, as well as a $2.45 million deal in a class action case brought by another former truck driver. The two actions are closely related.

Settlement Offers Lacking Details

In his decision, U.S. District Judge Fernando Olguin cited a lack of details in the proposed settlement, such as how much each member of the certified class would be compensated and how much the reward payments would be to the class representatives.

Finally, according to the judge, neither of the related complaints  mention Fair Labor Standards Act (FLSA) claims, yet both state that settlement amounts would cover claims against this federal law.

What is the FLSA?

The U.S. Department of Labor (DOL) claims the FLSA establishes a minimum rate of pay per hour; rules regarding overtime pay and how it is calculated; rules regarding employer record keeping of work hours; and rules dictating the employment of minors. The FLSA governs both private sector employers as well as those in municipal, state, and federal employ.

Non-exempt employees are to be paid overtime for hours worked above 40 in an established seven-day workweek. As indicated by the Labor Department, there are strict rules regarding classifying an employee as ‘exempt,’ to ensure that workers are paid all wages for which they are entitled.

The FLSA does not establish rules for meal and rest breaks, although  states have their own laws to which employers must adhere.

Court-Ordered Deadline

Judge Olguin stipulated that the parties in the related cases must make the necessary edits to their filings by July 18, 2019.

The first proposed deal affects a certified class of 3,729 workers who allege the railway transportation company failed to allow time for rest breaks, and provided wage statements that didn’t meet required minimum standards. The class period runs from August 2011 to September 2017.

The second proposed deal involves a class of 3,325 workers that the court has yet to certify. Proposed class members include truck drivers in California who worked from April 14, 2012, until the case is given preliminary judicial approval.

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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