A port trucking company has been ordered to pay 38 truck drivers nearly $7 million in stolen wages by the California Labor Commissioner after a strike that began in July.
Millions of Dollars To Compensate Drivers for Truck Lease Payments, Maintenance Costs
The Labor Commission found that Pacific 9 Transportation had improperly classified its drivers as independent contractors rather than employees. The company was ordered to pay out $6.9 million to cover illegal paycheck deductions, lost wages, and legal costs. Much of the $6.9 million went towards paycheck deductions for truck lease payments, as well as costs like maintenance and insurance.
The Labor Commission also found that the truck drivers were paid less than minimum wage and were not compensated for rest brakes and meal breaks, which added to the massive sum that the company is ordered to pay the drivers.
Labor Unions Continue Battle Against Employment Misclassification
The average payout for the 38 truckers will be $187,000 each. The largest individual driver payout is $386,703.14.
Since 2012, 720 truck drivers have filed complaints with the Labor Commission regarding employment misclassification.
The ruling demonstrates the success that labor unions are having with using employee classification claims to force companies to recognize port truck drivers as employees.
Sources:
LA Times
American Journal of Transportation