Pacer Cartage Settles Calif. Truckers’ Unpaid Wages Class Action for $4.25M

A preliminary settlement in an unpaid wages class action involving a group of Pacer Cartage truck drivers who claim the trucking company failed to pay minimum wage and overtime has been reached.

According to court documents, Pacer Cartage has agreed to pay $4.25 million to resolve allegations that the company misclassified its trucker drivers as independent contractors, failed to provide meal and rest breaks as required by California labor laws, and for unpaid overtime.

Pending final approval, $1.26 million of the settlement will go towards attorneys’ fees and costs and $10,000 will be awarded to the unpaid wages class action lead plaintiff, Edwin Molina.

The class of drivers would receive a prorated portion of the remaining net settlement with the amount to be determined based on the hours the drivers worked for Pacer during August 2009 to April 2016, the settlement memorandum states.

There have been no objections to the terms of the Pacer unpaid wages class action settlement and only nine drivers have sought exclusion from the settlement.

“While no settlement is perfect, the proposed settlement in this action provides the class with real relief,” the memorandum reads. “Further, the reasonableness of the proposed settlement cannot be determined by the application of a mathematical formula.”

The Pacer Cartage unpaid wages class action lawsuit was originally filed in San Diego Superior Court in August 2013 by another named lead plaintiff.  However, the case was moved to the Southern District of California at which point Molina took over as the class representative.

Once both parties agreed to the settlement terms, the class was granted preliminary certification by the Southern District of California in February.

The Pacer Cartage Unpaid Wages Class Action Lawsuit is Ruelas Mendoza et al. v. Pacer Cartage Inc. et al., Case No. 3:13-cv-02344, in the U.S. District Court for the Southern District of California.

CA Labor Laws: Employee v. Independent Contractor

The proper classification of workers as employees or independent contractors is not a new concern for many California employers. Unlike employees, independent contractors are not subject to a variety of employment laws, including California wage and hour laws, anti-discrimination laws, and unemployment and workers compensation requirements.

The misclassification of employees as independent contractors, however, can carry steep fines and penalties under federal and California labor laws, as well as claims for unpaid overtime and failure to pay minimum wage by the misclassified employees.

Should You File an Unpaid Wages Class Action?

Misclassification of employees is at the heart of many wage and hour lawsuits in California. If they believe it’s to their advantage, some employers violate the California Labor Code and the federal Fair Labor Standards Act by incorrectly classifying workers as independent contractors, or as hourly, exempt, non-exempt or managerial, depending on which status cuts labor costs the most.

If your employer has prioritized profits over fair treatment of employees by failing to pay minimum wage or has violated California labor laws, then you may be entitled to compensation through an unpaid wages class action lawsuit.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now