Macy’s Trucker Misclassification Lawsuit Leads to $3.5M Settlement

In late October, a California federal judge approved a $3.5 million settlement resolving claims from truck drivers that Macy’s West Stores Inc. and XPO Logistics misclassified drivers as independent contractors.

Macy’s Trucker Misclassification Settlement

According to the named plaintiffs Adrian V., Mario P., and Mynor C., the drivers worked for Macy’s West and delivered goods. The plaintiffs claim that they were misclassified by their employer as independent contractors rather than employees; their employer failed to pay them all owed wages, and the employer did not allow them to take rest or meal breaks. Although Macy’s West has not admitted guilt, the settlement will resolve these claims.

The proposed $3.5 million settlement is intended to be divided, with 60 percent of the sum going to drivers and 40 percent going to helpers. Some $1.2 million is being withheld for attorney fees. Each of the named plaintiffs is expected to receive an incentive award of $5,000, with the remainder of the funds divided among the 700-plus class members.

The class of plaintiffs includes any individual who performed services as a driver or helper delivering Macy’s West products from the company’s distribution center in Union City, Calif. and did not sign a delivery service agreement with the company. The class covers workers who were employed with the company between Dec. 28, 2014, and Oct. 30, 2019.

About Trucker Misclassification and Independent Contractors

Companies may misclassify truckers for a variety of reasons. Classifying workers as independent contractors rather than employees allows employers to pass on many costs associated with the job to the workers, rather than paying out themselves. Independent contract truck drivers are responsible for many costs, including the cost of the purchase or lease of their vehicle, fuel, taxes, insurance, fees, and maintenance. Truckers who are classified as independent contractors rather than employees are also responsible for obtaining their own health insurance and paying their own employment taxes and are not entitled to all of the protections and rights afforded to employees.

Truckers who are classified as independent contractors but whose employer sets their hours and schedule, controls their load assignment and mileage rates, limits their ability to work for other trucking companies, prohibits them from enlisting help or hiring assistance, or tracks them through GPS may have been subject to trucker misclassification. True independent contractors are not under the control of their employer in regard to their hours, schedule, and duties.

If you are a truck driver who has been classified as an independent contractor despite your employer having control over your hours and schedule, you may have been subject to employee misclassification. Victims of trucker misclassification may be eligible to hire a qualified attorney to represent them in a class action lawsuit against their current or former employer. Victims who file lawsuits may be able to recover financial compensation including reimbursement for lost wages.

The Macy’s Trucker Misclassification Lawsuit is Case No: 3:16-cv-04440, in U.S. District Court for the Northern District of California.

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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