Brigette Honaker  |  September 29, 2021

Category: Labor & Employment

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eighteen wheeler on the road

An ongoing issue within the trucking industry is the problem of misclassification. Some trucking companies may be misclassifying their workers as independent contractors when they should actually be properly classified as employees. This misclassification may deny workers compensation, benefits, and protections that they would receive as employees.

Companies that have been misclassifying truck drivers may be liable for their actions. A number of trucking companies are currently under investigation for potentially misclassifying truck drivers as independent contractors or otherwise underpaying their commercial truck drivers, including USKO Express.

What Is USKO Express?

USKO Express is a transportation company based out of Sacramento, Calif., boasting hundreds of trucks and other transportation vehicles. USKO services the entire continental U.S. and can go to Alaska if needed.

According to its website, the company has been in business for 14 years, had 4,050 contracts, carried 137 thousand loads, and has driven 49 million miles.

Can an Independent Contractor Drive for USKO?

USKO has two types of drivers: employee drivers and independent contractors. Current career opportunities included on the company’s website for truck drivers are specifically for owner-operators, which are independent contractors.

Just because a truck driver is an independent contractor doesn’t mean they can’t have a close business relationship with a particular company. Indeed, independent contractor truck drivers are owner-operators of their own trucks. In order to qualify as an independent contractor, these workers would be able to choose which assignments they want to accept, set their own hours, and negotiate payment and contract conditions. Costs of truck operation and maintenance rest on the worker, not the company.

Can an Independent Contractor Driver Be a Misclassified Employee?

Unfortunately, some trucking companies misclassify drivers as independent contractors instead of employees. This can force workers to pay their own costs and be denied benefits, wages, and protections while requiring them to operate under the authority of the company rather than on their own.

Under the recently established ABC test, part of the AB5 bill in California, a worker, by default, is considered an employee and not an independent contractor, unless they meet all three of the following requirements:

  • The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact
  • The worker performs work that is outside the usual course of the hiring entity’s business
  • The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed

While some exemptions have been made for professions that fall under the new rules laid out in AB5, trucking has not yet been exempted.

What Is a Misclassified Employee Entitled To?

A misclassified employee is entitled to a number of benefits that would be denied as an independent contractor, including:

  • Proper wages
  • Overtime
  • Breaks
  • More

In addition to not receiving these benefits, a misclassified employee would also be expected to pay a number of expenses that should be covered by the company, such as:

  • Insurance
  • Social Security taxes
  • Medicare taxes
  • Truck purchase
  • Operational/maintenance costs
  • More

Trucker taking a break at truck stopGig Companies Fight Worker Rights

In the months leading up to the 2020 election, gig economy companies such as Uber, Lyft, and DoorDash lobbied fiercely in favor of a ballot measure – Proposition 22 – which would exempt them from classifying their drivers as employees. After spending nearly $200 million fighting for the proposition, the measure was approved by the state’s voters.

“California has spoken and millions of voters joined their voices with the hundreds of thousands of drivers who want independence plus benefits,” the Yes on 22 campaign said in a statement.

“With the passage of Prop 22, app-based rideshare and delivery drivers across the state will be able to maintain their independence.”

Although Uber and Lyft are celebrating this as a win, gig economy drivers may face significant disadvantages. Without being classified as employees, independent contractor drivers cannot be ensured minimum wage, worker’s compensation, unemployment insurance, leave benefits, and more.

In a state like California, these benefits are an especially notable loss. California has some of the strictest employment laws in the country, with a liberal overtime policy and penalties for failure to comply with the laws.

Due to these factors, labor and union groups opposed Prop 22 leading up to the election. President-elect Joe Biden, other senators, and state lawmakers joined these groups in their opposition. Unfortunately for gig economy drivers, these efforts couldn’t stand up to the millions of dollars poured into support for the proposition.

Moving forward, this proposition will likely have larger implications on non-delivery drivers. For example, truck drivers may see the impact of this proposition in future litigation and business dealings.

Can a Misclassified Employee Lawsuit Get You Compensation?

A growing number of truckers are turning to litigation, alleging they were misclassified as independent contractors instead of employees. In July, transportation company J.B. Hunt agreed to bring an end to a February 2019 lawsuit over the misclassification of independent contractors by paying an estimated $6.5 million settlement, awarding 312 drivers about $20,000 each, on average. The lawsuit alleged that J.B. Hunt failed to “reimburse for necessary business expenses” as required by California labor law, as well as failed to give proper breaks and meet minimum pay levels. The case rested on the misclassification claim, but the settlement agreement brought an end to the suit without determining the classification of the drivers.

If you currently work or have worked as an USKO Express driver (or a contractor for another trucking company) and you either live in California or make deliveries or carry loads out of/through California, and you believe you are a misclassified employee, you may be able to join this class action investigation and pursue compensation.

Filing a lawsuit can be a daunting prospect, but 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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