Court Upholds Penalties for Misclassification of Truck Drivers

Wednesday, May 24, 2017 | 0

A federal judge affirmed an administrative ruling awarding $958,660 plus attorney fees and costs to port and rail truck drivers who were misclassified as contractors, the California Labor Commissioner’s office announced.

“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,” Labor Commissioner Julie A. Su said in a statement.

XPO Cartage appealed the commissioner’s 2015 award first to superior court before the case was moved to the U.S. District Court for Central California. After a four-day bench trial and post-trial briefing, U.S. District Court Judge William Keller ruled that the drivers were misclassified and entitled to reimbursement for expenses and unlawful deductions.

The labor commissioner has awarded nearly $4 million to at least 16 drivers misclassified by XPO Cartage since 2014.