Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/936627
18 commercial carrier journal | february 2018 JOURNAL NEWS Los Angeles sues fleets it says misclassified drivers T he city government of Los Angeles last month filed a lawsuit against three Southern California-based trucking companies, claiming the fleets wrongly classified hundreds of drivers as inde- pendent contractors instead of company employees. All three fleets – CMI Trans- portation, K&R Transportation and Cal Cartage Transportation Express – oper- ate as California Cartage Co. divisions. Los Angeles city attorney Mike Feuer said the companies intentionally mis- classified the drivers "to avoid obliga- tions to pay employee benefits" such as insurance, worker's compensation, minimum wage and the reimbursement of drivers' business-related expenses. Feuer said the city is seeking restitu- tion payments for the drivers. A spokes- person for California Cartage said the company is not commenting on the lawsuit. The three companies also are facing lawsuits filed last year from driv- ers themselves. Driver misclassification claims have bubbled up across the country in recent years, but Southern California ports are a hotbed for such disputes. Courts mostly have sided with drivers in such cases, awarding them back wages for benefits deemed unpaid. Regarding Los Angeles' lawsuit, the carriers "exert near complete control over their drivers' assignments and details of their work — the most significant factor in determining if a worker is an indepen- dent contractor or an employee under California law," the city said. A bill was filed in the U.S. House last year to examine the issue of driver clas- sification practices by port carriers, but the legislation has seen no action since its introduction. Another bill in Congress, introduced in 2015, would impose stiff penalties for carriers that incorrectly classify drivers as independent contractors. It also has seen no action since being filed. – James Jaillet REFUSE SEAT • Water and stain resistant cloth • Air adjustable lumbar support for improved comfort • Front controls for easy access and flexibility of placement for right- hand or left-hand drive vehicles • Black or gray, hi-back or mid-back Fits most popular vehicle models Call Today! 1-800-459-7328 The Na onal Refuse Seat is the seat for your fleet! The modular construc on reduces vehicle maintenance costs and the tubular frame design provides superior strength and ultra-comfort. 50 Nances Creek Boulevard (PO Box 566) Piedmont, AL 36272 1-800-459-7328 | www.nationalseating.com Copyright © 2018 CVG-Alabama, LLC. All rights reserved Another quality brand of Commercial Vehicle Group Untitled-2 1 1/8/18 8:21 AM In addition to lawsuits filed in recent years, drivers have initiated work stop- pages and strikes to protest their classifi- cation as independent contractors.