Recent Litigation Addresses XPO Driver Misclassification

XPO Logistics, formerly known as 3PD Inc., has a track record of XPO driver misclassification as independent contractors, according to some of its drivers. The company has recently been accused of misclassifying its truck drivers as independent contractors rather than as employees.

This situation has led to class action lawsuits in the states of New York and Illinois. Currently, the California Labor Commission is reviewing a complaint against the company.

According to drivers, XPO driver misclassification becomes apparent when the details of the relationship between the drivers and the company are reviewed.

Drivers have indicated that they are often expected to show up for a daily meeting at a specific time in which they are given instructions about their deliveries for the day. The deliveries may or may not be ready and, in the meantime, the contractor is forced to wait without pay for an indefinite period.

Drivers say XPO driver misclassification is also evident when the lengthy days are considered. Drivers report often working days more than 12 hours, 6-7 days a week. Because of the independent contractor status, they are ineligible for overtime pay of one and one-half times their hourly rate. And when the compensation they do get is spread out over so many hours, it can fail to satisfy state and federal minimum wage regulations.

XPO driver misclassification and independent contractor misclassification on the part of any employer is a common issue in today’s world. Whether done deliberately or not, it gives the employer a pass on providing health insurance, disability insurance, unemployment insurance, workman’s compensation, payment in to the social security system, reimbursement of expenses, payroll taxes, minimum wage, and overtime pay.

From the perspective of the “independent contractor,” work can have a lot of extra financial liabilities: as a self-employed individual, the person must pay his/her portion and the employer’s portion of social security taxes which are not optional.

They are responsible for a lot of the bills associated with supplies needed to perform the job as well. Technically, they are considered business expenses which, with proper documentation, can be subtracted from gross income when determining federal income tax, however.

In the case of XPO driver misclassification, drivers are required to purchase the delivery truck and services to maintain vehicle in good working order, as well as gasoline. They may have to take a hit to their wages by subtracting the cost of any damage to goods they take under their care during the delivery phase of a purchase agreement.

In the spring of 2016, the Illinois class action lawsuit against XPO Logistics settled out of court after much mediation for $2.8 million. It is estimated that over $900,000 of this sizable settlement will be used to pay off involved legal counsel. Another $50,000 will be divided among three class representatives according to a pre-determined plan.

There were 258 eligible Class Members of record with this class action lawsuit, but only 115 had filed legitimate claims for their portion of the settlement as of March 2016. This brings the average payout per person to $15,000.

Have you or did you work for XPO Logistics as a driver? Were you misclassified as an independent contractor? You may be entitled to lost overtime wages and/or wages to bring you to minimum wage levels in accordance to state and federal statutes. A free consultation with a knowledgeable employment attorney can give you an idea of your legal rights and options.

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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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