* California - Class-action lawsuit argues that drivers were misclassified as independent contractors
-- Three trucking company subsidiaries of XPO Logistics Inc. were sued in California Monday for allegedly misclassifying their drivers as independent contractors... The lawsuit seeking class action status, filed in Los Angeles Superior Court, argues that drivers for XPO subsidiaries Pacer Cartage Inc., Harbor Rail Transport and PDS Transportation Inc. failed to pay minimum wage, provide meal breaks and rest breaks and to reimburse business expenses, among other allegations... XPO, a transportation services company, has grown rapidly over the past few years through acquisitions. Until last year, when XPO purchased trucking company Con-way Inc. and French transportation firm Norbert Dentressangle SA, most of the company’s subsidiaries were “asset-light,” meaning their contractors owned the equipment—for example, trucks—that they used to transport cargo... The trucking companies that were sued Monday perform what is known as drayage trucking services, or hauling goods the short distance between seaports and nearby rail yards and warehouses, a key link in the national supply chain... But that model has increasingly come under legal scrutiny, in drayage as well as other sectors of the transportation industry. Alleged misclassification of workers has led to high-profile lawsuits against Uber Technologies Inc. and FedEx Corp., among others. FedEx settled a case in California last year for $228 million...
(Photo by Tony Ding/AP - XPO Logistics CEO Brad Jacobs, left, talks with a company driver. Three trucking company subsidiaries of XPO were sued in California Monday for allegedly misclassifying their drivers as independent contractors) -- Los Angeles, CAL, USA - The WSJ, by ERICA E. PHILLIPS - Jan. 12, 2016Labels: lawsuits, trucking industry news USA
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