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Feb 3, 2015

USA * California truckers win $2 million in wage theft suit

Trucking Rules and Regulations * California

(Photo: Global Terminal & Container Services)
-- Seven Los Angeles-area truckers have won a $2 million claim against an international shipping company accused of stealing their wages by improperly classifying them as independent contractors and charging them to lease its trucks to drive... In a decision with implications for hundreds of companies and thousands of truckers in Southern California alone, a San Diego County Superior Court judge held that the seven plaintiffs should have been defined as employees of Pacer Cartage under California's labor law, not as independent owner-operators... Pacer, a subsidiary of global shipping company XPO Logistics Inc, plans to appeal the judge's decision, said Troy Cooper, XPO's chief operating officer... Judge Jay Bloom ruled the seven drivers, who were Hispanic and spoke little English, were entitled to reimbursement for the money California-based Pacer deducted from their wages for the truck leases, insurance, vehicle maintenance, fuel and other out-of-pocket expenses... Most California freight hauling companies now operate under the same complex truck-leasing scheme, which the judge ruled violates state labor law... Many drivers, unable to afford to buy new trucks of their own, were forced to sell their rigs and lease trucks from shipping companies, which also acquired exclusive access to the waterfront under port "concessions" created under the clean-air program... The truckers were barred from entering the ports to pick up cargo unless driving for an authorized concession. And their lease arrangements effectively locked them in to driving for no more than one company... Los Angeles,CAL,USA -Reuters/Yahoo News, by Steve Gorman & Curtis Skinner & Richard Borsuk -January 30, 2015

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