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Trucking Companies To Pay $9.2M To Settle Wage Claims

On April 13, 2018, a putative class of employees filed a motion asking the Honorable Dale A. Drozd, of the U.S. District Court for the Eastern District of California, for preliminary approval of a proposed deal under which Roadrunner Intermodal Services LLC, Central Cal Transportation LLC, and Morgan Southern Inc. (collectively, "Defendants") will pay $9.2 million to settle claims against them alleging that they misclassified employees as independent contractors.

The putative class of approximately 796 drivers (hereinafter "Plaintiffs") claim the trucking companies violated numerous state and federal labor laws by classifying them as independent contractors instead of employees. According to Plaintiffs, they were employees and, as such, were entitled to overtime wages, minimum wages, separation wages, business expenses, meal and rest breaks, and proper wage documentation.

Three separate lawsuits were filed against Defendants by different groups of employees between March 2015 and January 2016. The cases were combined in June 2017 to avoid unnecessary duplication of proceedings.

If the settlement is approved, class members will get access to at least $5.8 million after attorneys' fees and other deductions, which would equate to an average of $7,355 for each member. The amounts recovered by each putative class member will vary depending on the length of their respective employment with Defendants since February 2011.

The legal team at SFMS has significant experience litigating wage and hour and class action matters. If you have any questions regarding this subject or this posting, please contact Nick Lussier ([email protected]) or Chiharu Sekino ([email protected]). We can also be reached toll-free at (866) 540-5505.

Shepherd, Finkelman, Miller & Shah, LLP is a law firm with offices in California, Connecticut, Florida, New Jersey, New York, and Pennsylvania. SFMS is an active member of Integrated Advisory Group (www.iaginternational.org), which provides us with the ability to provide our clients with access to excellent legal and accounting resources throughout the globe. For more information about our firm, please visit us at www.sfmslaw.com.

Sources

Simpson, Dave. "Trucking Cos. To Pay $9.2M To End Drivers' Wage Claims." Law 360. Last modified on April 16, 2018.

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