Truck Drivers Suing XPO Subsidiaries for Misclassification - Global Trade Magazine
  January 25th, 2016 | Written by

Truck Drivers Suing XPO Subsidiaries for Misclassification

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  • WSJ: Allegations brought against XPO subsidiaries include refusing to properly compensate truckers.
  • XPO has denied the claim that is subsidiaries misclassified truckers as independent contractors.
  • FedEx settled a California worker misclassification case last year for $228 million.
  • Uber has been sued by drivers who claim they are entitled to benefits such as workers’ compensation.
  • National Employment Law Project: 65 percent of U.S. drayage truckers are misclassified as independent contractors.

Three subsidiary companies of XPO Logistics Inc. are being sued for misclassification of workers as independent contractors, the Wall Street Journal has reported.

The three trucking businesses in question are Pacer Cartage Inc., PDS Transportation Inc. and Harbor Rental Transport. These companies are drayage operators, which involves transporting cargo to and from ports and nearby warehouses.

According to the WSJ, the allegations brought against the subsidiaries include refusing to properly compensate the employees, failing to give them breaks, and neglecting reimbursement for business-related costs.

XPO has denied the legal merits of the claims.

Drayage has faced increased controversy in recent years misclassifying employees as independent contractors. Other prominent companies, including Uber Technologies Inc. and FedEx Corp. FedEx settled a California case last year for $228 million. The Uber case was brought by drivers who claim they are entitled to benefits such as workers’ compensation.

Reuters recently reported that National Employment Law Project research shows that over 65 percent of the 75,000 U.S. drayage truckers are misclassified as independent contractors.

The class-action lawsuit was filed in California with the Los Angeles Superior Court. Kabateck Brown Kellner LLP is the law firm that will be representing the drivers.