The town government of Los Angeles has filed a lawsuit from a few Southern California-dependent drayage carriers, boasting the fleets wrongly classified hundreds of motorists as unbiased contractors as an alternative of firm staff. All a few fleets — CMI Transportation, K&R Transportation and Cal Cartage Transportation Convey — run as divisions below California Cartage Corporation.
L.A. town attorney Mike Feuer suggests the businesses intentionally misclassified the motorists “to keep away from obligations to pay out personnel benefits” like coverage, worker’s comp, bare minimum wage demands and the reimbursement of drivers’ small business-associated charges. A spokesperson for California Cartage suggests the firm is not commenting on the lawsuit. Feuer suggests the town is trying to get restitution payments for the motorists. The a few businesses are also dealing with lawsuits from motorists on their own, filed past yr.
Driver misclassification claims have bubbled up throughout the region in modern years, but Southern California ports are a hotbed of this sort of disputes. In addition to a bevy of lawsuits in modern years filed by motorists from their carriers, motorists have initiated numerous do the job stoppages and strikes to protest their classification as unbiased contractors.
Courts have typically sided with motorists in this sort of scenarios, awarding them back again wages for advantages deemed unpaid. Driver misclassification has reportedly in some scenarios reduce drivers’ wages to just about practically nothing after carriers deduct charges and coverage fees from their paychecks.
With regards to L.A.’s lawsuit, which was announced this week, the carriers “exert around entire command over their drivers’ assignments and details of their do the job — the most important issue in figuring out if a worker is an unbiased contractor or an personnel below California law,” the town stated in its announcement about the lawsuit from the a few drayage carriers.
A monthly bill was filed in the U.S. House past yr to take a look at the concern of driver classification practices by port carriers, but the monthly bill has observed no motion considering that its introduction. One more monthly bill in Congress, released in 2015, would impose stiff penalties for carriers who have improperly classified motorists as unbiased contractors. It much too has observed no motion considering that remaining filed.