Truck Drivers to Receive $6M to End Independent Contractor Misclass Lawsuit

Truck drivers for a logistics company have recently settled claims of owed wages for $6 million.The California based logistics company, Rail Delivery Services Inc., allegedly failed to properly classify its truck drivers as employees and instead considered them independent contractors. The settlement was reached on behalf of nearly 400 truck drivers under the Fair Labor Standards Act (“FLSA”) and the California Labor Code.

This collective and class action matter, which was originally filed in 2019, alleged that the logistics company unlawfully misclassified its interstate commerce truck drivers as independent contractors and as a result of that, failed to do the following: (1) provide lawful minimum wages for all hours worked in violation of the FLSA, the California labor laws, and other state laws, (2) provide meal and rest breaks and/or premium pay, (3) reimburse them for employment-related expenses and losses, and (4) took wrongful deductions from their wages. The $6 million payout will mainly depend on how long the truck drivers worked for the logistics company, with those having longer tenure receiving a higher. The average payout would be around $8,000 for affected truck drivers.

Companies frequently misclassify workers as independent contractors in order to save on labor costs by denying theiremployees benefits such as overtime pay. Working long hours and not having significant control over the amount of work you do for a company, such as choosing your routes, making your own schedule, and being able to work for multiple companies, you may be classified incorrectly and owed significant wages. If you work in trucking or a similar industry, and feel you may be incorrectly classified as an independent contractor, call our employment law firm, Fitapelli & Schaffer, LLP, for a free and confidential consultation at (212)300-0375. You can also visit our website here for additional helpful information regarding your employment rights.