XPO Logistics Accused of Misclassification of Truck Drivers

The misclassification of truck drivers is reportedly a big issue at XPO Logistics, with the company facing allegations of federal labor law violations. In order to avoid paying minimum wage and overtime, the misclassification of truck drivers allegedly became one of the companies’ methods of cutting labor costs.

Even though these truck drivers are treated as employees, they are classified as independent contractors. As independent contractors, XPO drivers are expected to cover expenses relating to occupational duties including refilling gas, automobile maintenance, and are responsible for any damaged goods.

In addition, independent contractors are not eligible for the same benefits as “non-exempt” employees, such as paid meal periods, rest breaks, and overtime rates. Furthermore, XPO drivers have to dedicate a significant portion of their schedule to making these deliveries and are expected to adhere to company standards in terms of professionalism.

Overview of Misclassification of Truck Drivers

XPO Logistics is a worldwide transportation and logistics company, delivering appliances and other large items for companies like Sears and Macy’s. Based in Connecticut, the company has nearly 1,500 locations in 31 countries around the world and heavily relies on the truck drivers they employ to make the deliveries.

According to former and current XPO drivers, they are often required to work six to seven days a week with their shifts lasting between 12 to 14 hours. In addition, XPO drivers have also been reportedly required to attend daily meetings that detail instructions about the items they are supposed to deliver.

Drivers have also reportedly been forced to wait around until a delivery is ready for pickup, without being compensated for any of that time. Due to the alleged misclassification of truck drivers, these XPO drivers are not compensated at an overtime pay rate for any overtime hours.

However, by classifying these drivers as contractors, XPO Logistics avoids paying various labor costs such as health benefits, expense reimbursement, workers compensation insurance, unemployment insurance, disability insurance, and social security. At this point in time, XPO Logistics is facing legal action for alleged misclassification of truck drivers.

Several class action lawsuits have been filed in Illinois and New York, stating these truck drivers should be classified as non exempt employees and not independent contractors. These drivers say they are actually non-exempt employees and should therefore be entitled to overtime rates and be compensated for any missed meal breaks or rest periods.  New Mexico drivers may also be in a position to bring a legal claim for better compensation and benefits.

Non-exempt employees should also be compensated for any expenses incurred while on the job, along with the company covering any other expenses or liabilities pertaining to the job.

Class action investigators are encouraging potential claimants to come forward, as drivers have secured several favorable rulings from California. According to the state Labor Commissioner, the alleged misclassification of truck drivers should be fixed and XPO drivers should be categorized as employees.

Currently, XPO drivers in the states of California, Illinois, or New Mexico who may have experienced employment misclassification may be able to file legal action against the company. Potential claimants should contact a lawyer to determine if they are eligible to file a claim.

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If you work as an XPO Logistics delivery driver as an independent contractor, you may be entitled to compensation.

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