XPO Logistics Accused of Using Drivers Misclassified as Contractors

XPO Logistics drivers in California, Illinois and New Mexico say they are misclassified as contractors, preventing them from getting the employee benefits and protections they’re entitled to.

In April, the California Labor Commission ruled four drivers should have been classified as employees  and handed down an $855,000 award. XPO is appealing the decision, insisting the drivers are independent contractors.

More than 800 truck drivers have filed misclassification wage lawsuits over the past six years. The California Labor Commissioner says more than 300 cases have resulted in awards totaling nearly $40 million. A couple of hundred cases are still making their way through the system.

Drivers who work for XPO Cartage, XPO Port Service, XPO San Diego, ITS/Line Port, LBCT Port Terminal, Evergreen Port Terminal, Intermodal Bridge Transport, K & R Transportation, Cal Cartage Express and California Cartage Warehouse have said they are misclassified as contractors.

In the state of California, the law differentiates between an employee and an independent contractor based in large part on how much control the employer has over the worker.

Other considerations include how long it takes for services to be completed and how permanent the relationship is between the employer and the worker.

The Difference Being Misclassified as Contractors Makes

XPO drivers have given reasons they believe they would be more correctly classified as employees. They must report to the XPO facilities at a certain time to pick up items to be delivered at a promised time.

Some XPO delivery drivers are expected to attend meetings every day to receive instructions regarding their day’s delivery schedules. Other drivers say they are expected to wait on site until a delivery is ready to be picked up without compensation for their wait time. Workers also lament no meal break policy exists for them.

Working 12 to 14 hours per shift for six or seven days a week as an independent contractor means drivers are not paid overtime wages. XPO drivers pay for the cost of their trucks, fuel, maintenance, and for any goods that are damaged while in their possession.

Drivers say that because they’re misclassified as contractors, they’re missing out on the wages and benefits that employees receive.

California truck drivers have an extra concern because beginning in 2020, new environmental regulations will mean older trucks will need modifications or be replaced with new trucks. Drivers are worried that having to bear these added expenses will financially ruin them. The regulations will affect the twin ports of Los Angeles and Long Beach.

Companies whose truck drivers are misclassified as contractors avoid paying payroll taxes, minimum wage, overtime pay, health benefits, expense reimbursement, workers compensation insurance, unemployment insurance, disability insurance, and social security. The financial advantage for companies to have workers misclassified as independent contractors has no bearing on whether the workers are actually employees or contractors.

If you work as an XPO Logistics delivery driver in California, Illinois or New Mexico and maintain independent contractor status, you could be eligible to join a class action investigation for drivers misclassified as contractors.

Join a Free XPO Delivery Drivers Class Action Lawsuit Investigation

If you work as an XPO Logistics delivery driver in California, Illinois, or New Mexico as an independent contractor, you may be entitled to compensation.

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