XPO Independent Contractor Lawsuit Wins $958,000 for Drivers

An XPO independent contractor dispute brought before a federal district court has ended in a judgment in favor of five port and rail truck drivers.

The drivers were awarded $958,660 in reimbursement and attorney’s fees in the ruling that follows California Labor Commission rulings in their favor. XPO Logistics appealed those decisions that were ultimately moved to federal court. The Labor Commission’s lawyers defended the decisions for the drivers.

The drivers claimed they were misclassified as independent contractors, when in fact the restrictions the company placed upon them made them more like employees. They were not allowed to work for another company, and they did not own their own equipment. As independent contractors, the drivers were generally not able to receive benefits that were available to employees.

“The United States District Court’s decision in this case vindicates the rights of five employees who have sought for years to recoup the deductions unlawfully withheld from their wages due to being misclassified as independent contractors,” said California Labor Commissioner Julie A. Su, according to Trucking Info. “My office is dedicated to ensuring workers are paid what they are due under the law and ensuring workers are properly classified.”

XPO Independent Contractor Case Shows Misclassification

The XPO independent contractor case shows how misclassification can make a heavy financial impact. As an XPO independent contractor, the driver had to cover the costs of maintaining the trucks, fuel, and damaged goods. They were not paid overtime wages when they worked extra hours.

Some XPO drivers allegedly had to attend daily meetings to receive instructions about the items they were delivering, and some had to wait until a delivery was ready to be picked up, all without proper compensation for these periods of time. No uniform policies were in place regarding meal times or breaks.

The XPO independent contractor lawsuit claims the drivers were required to report to the facilities at a pre-determined time to pick up items. Drivers also reported working six to seven days per week for shifts that could last 12 to 14 hours.

Classifying drivers as XPO independent contractors enabled XPO to avoid paying payroll taxes, minimum wage, overtime pay, health benefits, expense reimbursement, workers compensation insurance, unemployment insurance, disability insurance, and Social Security.

While many states have different guidelines to determine an employee from an independent contractor, California makes the differentiation mainly by how much control the employer has over the worker. Other factors include whether the relationship between the employer and the worker is permanent, and the amount of control the employer has over the worker’s assigned tasks.

XPO is facing additional class action lawsuits across the United States over allegations their XPO independent contractors should be classified as employees.

If you worked as an XPO independent contractor as a delivery driver, you could be eligible for compensation through legal representation.

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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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