Hundreds of truck drivers who deliver goods across the U.S. from the ports of Los Angeles and Long Beach have won a major payout in federal court.
The world’s second-largest freight company, XPO Logistics, agreed Tuesday to pay truckers $30 million to settle class-action lawsuits alleging wage theft.
The plaintiffs claimed two XPO subsidiaries, XPO Logistics Cartage in Commerce and San Diego, as well as XPO Port Service in Rancho Dominguez, paid them less than minimum wage, failed to pay out meal and rest breaks, and did not reimburse them for expenses or wait-time penalties.
Truckers are generally classified as independent contractors who lease trucks from companies, but can sometimes run into financial trouble by virtue of that tenuous categorization. Contracting truckers can be terminated at any time, thus losing the money they have invested in the truck. They are also ineligible for most labor protections, including the ability to collectively bargain.
Additionally, contractors are responsible for business expenses that can severely garnish ultimate take-home pay.
Settlements are still subject to change, but individual drivers are estimated to receive as much as $100,000 each, depending on how long they worked for XPO.
The settlement comes in the wake of a series of legislative developments aimed at tightening protections for long-haul drivers. A 2018 California bill, S.B. 1402, makes logistics companies’ customers (such as major retailers like Target and Amazon) jointly liable for wage violations if contractors are not able to fully collect judgments.
Gov. Gavin Newsom also signed S.B. 338 last month, which imposes joint liability on retailers that hire logistics companies that repeatedly violate wage laws.
The $30 million settlement is just one manifestation of the international pressure mounting against XPO. Both U.S. and overseas labor unions have accused the Connecticut-based company of negligence during the COVID-19 pandemic, exposing workers to health risks at facilities, alongside general allegations of gender discrimination, sexual harassment, extreme anti-organizing tactics, and more wage theft.
XPO spokesperson Joseph Checkler, speaking with The Los Angeles Times, characterized the allegations as “wholly inaccurate.”
“These union-affiliated groups continue to spread false information to further their financial agenda,” he said.
Ron Herrera, president of the L.A. County Federation of Labor, said in a statement that while the XPO settlement was favorable, “there are far too many employers still cheating workers out of the pay and rights they deserve.”
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