Drayage drivers sue XPO Logistics subsidiaries for misclassification

Port trucking carriers Pacer Cartage, Harbor Rail Transport and PDS Transportation allegedly failed to pay minimum wage, provide meal and rest breaks and reimburse expenses, according to a class-action lawsuit filed with the Los Angeles Superior Court.    Drayage drivers from three XPO Logistics Inc. port tucking subsidiaries have filed a class-action lawsuit in Los Angeles Superior Court alleging the companies misclassified them as independent contractors.
   The suit argues drivers for Pacer Cartage Inc., Harbor Rail Transport and PDS Transportation Inc. did not receive minimum wage, proper meal and rest breaks, or reimbursement for legitimate business expenses.
   “We believe this case is without merit and plan to litigate it vigorously,” XPO Chief Operating Officer Troy Cooper told the Wall Street Journal in an emailed statement. “We are in constant dialogue with our independent-contractor carriers and believe the vast majority of them value the significant benefits that operating independently can bring.”
   The independent contractor model has been the norm in both drayage and short- and long-haul trucking operations since their inception, but has increasingly come under attack in recent years as drivers seek to be treated as employees.
   And courts have, for the most part, sided with the drivers, who contend their employers have committed wage theft and deprived them of benefits and legal protections by misclassifying them as independent contractors rather than employees. Recent examples include lawsuits against popular ride-sharing company Uber and traditional ground carrier FedEx Corp, which settled a similar case in California last year for $228 million.
   Just last month, the California Labor Commissioner, Department of Labor Standards Enforcement (DLSE) ordered port drayage company Pacific 9 Transportation to pay 38 truck drivers a combined $6.9 million in wages for alleged misclassification.
   Drivers in the lawsuit against the XPO subsidiaries are being represented by Kabateck Brown Kellner LLP, a Los Angeles law firm with plenty of experience in driver misclassification cases. In fact, Kabateck Brown Kellner reached a $4.25 million settlement with Pacer, one of the defendants in the current suit, just last May that is still pending a judge’s approval.