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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…

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…

Port trucking companies' responses to the California Division of Labor Standards Enforcement's (DLSE) flurry of decisions closing out 2015 took a new twist.  Instead of appealing the decisions, the three companies involved - Pacific 9 Transportation, Fargo Trucking and WinWin Logistics - let all but a handful of the more than 100 decisions stand. The companies' inaction essentially made the…

According to maritime consulting experts Drewry, west coast ports are not yet ready to handle regular calls from 18,000 twenty-foot-equivalent unit capacity vessels.  One of the reasons Drewry gives for ports being unprepared is the desperate need to improve the efficiency of the port trucking system.  But on December 26, CMA CGM’s 18,000 TEU Benjamin Franklin became the largest containership…

As we reported in our previous post, port drayage firms large and small are modernizing their business models to adapt to changes in the marketplace and government regulatory enforcement priorities.  Hub Group and Old Dominion Freight Line have both reacted by making announcements of moving to an employee driver model in order to avoid costly litigation and to improve reliability.…

Pacific 9 Transportation drivers have begun the 14th week of their indefinite Unfair Labor Practice strike. Picketing by drivers and their supporters have impacted marine terminals operations that have allowed Pac 9 trucks through their gates when there has been active picketing. After the beginning of this latest strike, the California Department of Labor Standards and Enforcement (DLSE) held hearings…

CA Governor Jerry Brown has signed Assembly Bill 621, sponsored by Assemblymember Roger Hernández (D–West Covina) who serves as the Chair of the powerful Assembly Committee on Labor and Employment. AB 621 provides a limited opportunity for amnesty for port trucking companies who voluntarily reclassify their misclassified drivers as employees rather than independent contractors. Though these companies will be obligated…

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