SAN DIEGO — A recent California state labor board ruling awarded seven short-haul truck drivers $2.2 million in back pay for overtime and work related expenses. Pacer Cartage, Inc., a subsidiary of XPO Logistics, misclassified the seven truck drivers as independent contractors in an effort to avoid paying overtime wages. The California labor board determined the company either knew or should have known that the truck drivers were employees, not independent contractors. The National Labor Relations Board (NLRB) made a similar ruling in a separate truck driver misclassification case. The NLRB ruling supports the state board’s decision and supports the truck drivers should Pacer Cartage choose to appeal the ruling.
Independent contracts are not considered employees under state and federal labor laws. Since they are not employees, state and federal overtime pay laws do not apply to their work. This means the individuals and companies that hire independent contractors do not have to pay them overtime, regardless of how many hours they work. Additionally, employers are not required to pay independent contractors, like the truck drivers, for job related expenses unless it is included in the contract with the independent contractors.
Classifying an individual as an independent contractor is not a straight-forward and simple process. Labor boards, the court, and employers must look at the circumstances of the employment. This can occasionally lead employers to accidentally misclassify employees. However, there are some factors that are more likely to lead to a classification of “employee” than “independent contractor.” For instance, if a person’s position and responsibilities are long-term and vital to the employer or if the person has little say in how and when work is completed, then that person likely has an employee position. But if the person’s work is something that is short-term, if the person works for more than one company, or if the person decides when and how work is completed, then the person may be an independent contractor.
Port truck drivers transport goods from ports to shipping warehouses. This is a vital service for the company hiring the truckers to transport their goods. And it is normal for the truck drivers to spend considerable time waiting at the ports for goods to arrive, based on their employer’s schedule. Yet they are frequently classified as independent contractors and are rarely paid for the wait times or the associated expenses. It is estimated there are around 49,000 port truck drivers misclassified across the country.
If you believe you have been is misclassified as an independent contractor, contact our experienced team of overtime pay lawyers today at (855) 754-2795 for a free consultation. Or complete the Free Unpaid Overtime Case Review form on the top right of this page and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.