The California Labor Commissioner's Office cited Costco Wholesale Corp. and two trucking firms a combined $868,128 for allegedly misclassifying 58 delivery drivers as contractors.
The agency said drivers working for Mega Nice Trucking LLC, based in Chula Vista, were systematically misclassified as contractors and deprived of protections, including minimum wage, mandatory breaks and workers' compensation coverage. Although the drivers were reclassified as employees in 2023, the violations allegedly continued.
"Workers continued to receive a flat daily rate without proper compensa...
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