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Cal. Logistics Company Order to Pay $2.2M for Trucker Job Misclassification

Pacer Cartage must pay $2.2 million in owed wages as a result of job misclassification, says LA employment lawyer Eric Grover.

LOS ANGELES, CA, USA, May 23, 2014 /EINPresswire.com/ -- A California logistics company has agreed to pay over $2.2 million in back pay as a result of misclassification of their truckers. This settlement marks the third company found to be misclassifying truck drivers following a recent scathing report that revealed the gross amount of employment misclassification our nation’s truckers are facing, reports Eric Grover, a Los Angeles employment lawyer at Keller Grover LLP.

Pacer Cartage, Inc. was accused of misclassifying short-haul truckers, failure to pay the driver for wait time at port load pick-ups, as well as neglecting to reimburse drivers for job expenses.

The California Labor Commissioner’s Division of Labor Standards Enforcement (DLSE) found that Pacer Cartage “knew or should have known” that the drivers were misclassified as contractors, rather than employees. Pacer Cartage was ordered to pay $2,214,496.39 in restitution, attorney’s fees, and interest as a result.

Pacer Cartage and its parent company, XPO Logistics, are one of the two largest companies in the trucking and logistics industry. Pacer plans to appeal the ruling.

According to recent report highlighting misclassification in the trucking industry, there are 49,000 port truck drivers who have been misclassified as independent contractors by their employers nationwide.

“This is a huge problem for truckers, as misclassification means these drivers are having to pay for items that otherwise would be covered by their employer, like maintenance, fuel and employment benefits,” Los Angeles employment attorney Eric Grover explained. A once lucrative job has been turned into a low-wage career as a result, leaving many families to resort to social programs that are costing taxpayers, which should have otherwise been covered by their employer.

Drivers for California-based drayage companies, Pacific 9 and Coast Bridge Logistics, are also facing similar class action lawsuits that allege employment misclassification and other labor law violations.

The DLSE is currently investigating around 500 similar complaints that have been filed by California truckers.

The CA wage and hour attorneys at the employment law firm of Keller Grover have been helping victims of job misclassification recover lost wages since 2005. To learn more about CA wage and hour laws, or to find out if your job has been misclassified, contact Keller Grover at http://www.cawagehourlaw.com.

Eric Grover
Keller Grover LLP
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