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Last week, California Governor Gavin Newsom signed into law Assembly Bill 5, which clarifies how to determine whether workers are employees or independent contractors. State Assemblymember Lorena Gonzalez of San Diego authored AB5 to codify the unanimous 2018 California Supreme Court Dynamex decision by implementing the “ABC” test across the board in California.   The Dynamex decision stated that in order…

On the heels of California’s new joint liability law, which underscores the responsibility beneficial cargo owners (BCO’s) hold within their supply chains, workers and activists are now turning to BCO’s to ensure their trucking contractors are in compliance with labor standards. Global mining giant Rio Tinto is the latest example of companies that have been trying to clean up their…

The California Division of Labor Standards Enforcement (DLSE) dropped the hammer on two of NFI’s flagship drayage companies right before the New Year.  California Cartage Express (CCX) and California Multimodal (CMI) were ordered to pay nearly six million dollars to 24 drivers who filed claims for unlawful deductions, unreimbursed expenses, unpaid minimum wages, and failure to pay meal and rest…

Last year, global supply chain leader NFI purchased SoCal-based Cal Cartage, which NFI had called “the premier U.S. port logistics provider.”  Cal Cartage is by far the largest drayage provider at the Ports of L.A. and Long Beach, and NFI would have reasonably expected this purchase to rocket the company to the top of the drayage industry, in part because…

The latest expose by USA Today examines the horrendous safety record of the port trucking industry. Entitled, "Asleep at the wheel: Companies risk lives by putting sleep-deprived port truckers on the road," it documents how port trucking companies coerce their drivers into working far beyond safe driving limits, causing dangerous crashes and threatening many lives. Given the frightening stories described…

With the LA City Attorney suing three major port trucking subsidiaries of NFI Industries over their business model classifying drivers as independent contractors, NFI may be having second thoughts on its recent acquisition of the California Cartage Companies. Together the three companies - California Cartage Express, CMI and K&R Transportation - have approximately 600 drivers, combining to make the largest employer of…

The Los Angeles City Council is preparing to demand the Port of Los Angeles and other City agencies investigate and report on actions to fix labor problems in the drayage and warehouse industries on port property. At a Special Meeting of the Trade, Travel, and Tourism Committee on November 28, 2017, Los Angeles City Councilmembers Joe Buscaino (CD 15) and Mike…

While several trucking companies have come into compliance with labor laws in order to avoid the crushing financial weight of misclassification liability, many others have pursued shell games in an attempt to hide assets to avoid paying anything owed to their drivers, as we reported in a previous blog post.  The latest twist in the battle over port driver classification was exposed by…

A group of non-profit attorneys have outmaneuvered a port trucking enterprise, thwarting its attempts to avoid misclassification liability through bankruptcy protection. On July 6, Asian Americans Advancing Justice-LA and the Wage Justice Center secured final approval of the landmark $5 million class action settlement against QTS Inc. and its related entities including LACA Express and Win Win Logistics from Judge Elihu…

Latest decisions by California Labor Commissioner reminds industry of risks in asset-light model Some industry stakeholders were wondering whether port drivers were still filing wage and hour claims challenging their independent contractor status.  The latest Orders, Decisions, and Awards (ODA's) issued by the Labor Commissioner’s Long Beach office on Friday, April 14, 2017, put that question to rest and was…

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