NEWS & REPORTS

Truckers land $855k payout from carrier for non-driving tasks

May 6, 2017 | Industry News

Jill Dunn  May 04, 2017

XPO Logistics is appealing a California’s agency’s award totaling $855,286 to four truckers for wage law violations, including under a 2016 state law mandating compensating “nonproductive time.”

California’s labor commissioner concluded the logistic giant’s subsidiary, XPO Cartage, had misclassified the truckers as independent contractors instead of employees. “Substantial evidence supports the finding that plaintiffs were functioning as employees rather than as true independent contractors,” it stated. On April 14, it ordered XPO to compensate them for meal and rest breaks, liquidated damages and interest.

XPO is appealing that decision to California’s superior court. “We know firsthand that the majority of owner-operators who serve our customers prefer to work as independent contractors, and we will continue to advocate for their right to do so,” it stated.

The carrier’s objection to the hearing, but otherwise did not participate, the agency noted. XPO maintained the state should compel arbitration to settle the issue, as stipulated in the agreements the truckers signed with the company.

The commission awards ranged from $171, 939 to $279,416 to compensate unpaid wages and penalties accumulated over three to four years of rail drayage in Los Angeles county. California require employees take 30-minute meal and 10-minute rest breaks and be off-duty during these periods. However, the drivers testified they remained on duty during breaks because of job pressure and being required to stay with the truck.

The order marked the first time a carrier was ordered to compensate truckers for nonproductive time after AB 1513 became effective on Jan. 1, 2016, said Justice for Port Truckers, a Teamsters union campaign. Most state lawmakers voted for the measure, designed to incorporate recent state appellate court decisions regarding piece-rate compensation. It mandated piece-rate employees receive compensation for nonproductive time described under AB 1513 and not related to federal hours-of-service for truckers.

he law requires piece-rate workers, including truckers paid per mile or delivery, receive no less than the applicable minimum wage for nonproductive time. XPO must compensate the drivers for inspecting trucks, scanning documents and waiting on dispatch. This is because they remained under the XPO’s control during that time, even though not performing tasks directly related to activity being compensated on a piece-rate basis.

The state requires nonproductive time be compensated under the applicable California or municipal minimum wage. Some California city ordinances raised minimum wage higher than what the state requires. Piece-rate employees working in these cities must receive the local hourly wage when it is higher than the state mandates.

In recent years, numerous misclassification claims have been filed against XPO and several and other Southern California drayage companies with the commission, courts and the National Labor Relations Board.

About the Author

NEWS & REPORTS

Hours of service too rigid, Office of Advocacy tells DOT

Mark Schremmer Relaying concerns from truckers, the U.S. Small Business Administration’s Office of Advocacy recently told the Federal Motor Carrier Safety Administration that its hours of service are too rigid. “Advocacy understands that hours-of-service regulations...

Why attention span isn’t the problem with your training program

Mark Murrel Pay attention. Is it true our attention spans are becoming, well, less attentive? After all, smartphones, social media, and all the other high tech gizmos seem to enthrall us on a daily basis. Tech can be a productivity enhancer, but it can also have a...

CVSA’s Upcoming Webinars

Safety Culture: Transforming Fatigue Management from a Liability into a Competitive Advantage Wednesday, May 14, 1-2 p.m. EDT For Members and Non-Members Learn how to foster a safety culture where drivers feel supported, recognize the signs of fatigue, and take...

What to look for in an online training provider

Mark Murrell It’s now 2025, which means I’ve officially been designing and building learning management systems (LMS) for 25 years. Much has changed in that time, and technology and the Internet have allowed us to develop online training tools we wouldn’t have...

Unnecessary regulation? It’s your chance to tell the DOT

Mark Schremmer Truck drivers often vent about the amount of regulations they must follow and how many of them do nothing to improve highway safety. Well, the time has come for truck drivers to do something about it. But the clock is running out. On April 3, the U.S....

CATEGORIES