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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…

Touted as one of the rising stars in the logistics world following its 2003 acquisition spree of 25 companies, XPO Logistics may be facing more lawsuits challenging its business model of classifying its truck drivers as independent contractors than any other logistics company in America. XPO freight, port, and rail drivers, as well as XPO warehouse workers, from across the…

 With infrastructure investment high on national agenda, call for reforms to bring ports into modern era. While rebuilding America’s infrastructure is high on the national agenda, there are few specifics on priority investments nor is there consensus on how to pay for these investments. Still, many would agree that ports are key pieces of our nation’s economic infrastructure. At a…

Latest port driver strike at Ports of LA/Long Beach ties up cargo Late last month, port truck drivers and warehouse workers serving the Ports of Los Angeles and Long Beach expanded their protests against false classification as independent contractors and alleged wage theft. (see, "Port truck drivers, gig-economy workers have much in common") The California Cartage family of companies bore…

  Driver classification roundup While the Hanjin bankruptcy has grabbed the headlines over the past few months laying bare endemic challenges to the global supply chain, port and truck driver classification remains an on-going area of contention. Here are the latest developments in truck driver employment classification. The consensus seems to point in a new direction: On October 25, Region…

Government investigations of port trucking companies continue, most recently landing two port trucking company owners in jail. The owners of Metro Worldwide, Inc, which operates at both the Los Angeles and Long Beach ports, were recently arrested for insurance fraud by the Los Angeles County District Attorney on April 28, 2016. According to the Los Angeles District Attorney’s office, Alvin…

State agencies are not the only governmental actors scrutinizing misclassification at port trucking companies. The National Labor Relations Board (NLRB) is now weighing whether misclassification in and of itself constitutes a violation of federal labor laws. Following an investigation, Region 21 of the NLRB recently found merit to charges filed by the Teamsters union that port drayage company Intermodal Bridge…

The Wall Street Journal has a rather in-depth piece on the misclassification issue in California's port drayage today, focusing on recent bankruptcies and the unwillingness of retailers to pay for "full-time labor."  But, as the article points out, the trend may unstoppable, in California and across the nation. “As most things go in trucking...California leads the way,” the piece quotes…

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