A trucking company has been ordered to pay 14 of its current and former drivers a total of $3.7 million. The company’s general manager is also being held jointly responsible for payment – so even if his company won’t pay, he’ll have to.
Before it was bought by NFI, the carrier was known as California Cartage Express (CCE). They were one of the largest port trucking companies at the ports of Los Angeles and Long Beach. And according to the recent ruling by the California Labor Commissioner, they were intentionally misclassifying their drivers as independent contractors.
The $3.7 million included money for unpaid wages and business expenses, damages for not paying at least minimum wage, interest, attorney’s fees, and more.
Since CCE was acquired by NFI after the lawsuits were filed, it might have been difficult to get anyone to pay. But the California Labor Commissioner used a law passed in 2016 called California Senate Bill 588.
According to analysis published by the UCLA Labor Center, SB 588 does several important things, including:
- “It targets deadbeat employers. Businesses that have an unpaid wage judgement against them must post a bond or else they open themselves up to a wage lien by the Labor Commissioner, preventing them from doing business.”
- “It reduces the abuse of our corporate laws. Businesses can no longer use layers of subcontracts and unclear reporting relationships to deliberately make enforcing labor laws difficult. Additionally, individuals involved in wage theft will now be held accountable.”
- “It empowers the Labor Commissioner to improve collections of stolen wages. This bill streamlines the collections process that has traditionally been so burdensome as to make it nearly impossible to collect unpaid wages.”
This marks the first time that SB 588 has been used to hold a trucking executive jointly accountable for a judgement against his company.
But it’s not just the judgement that is an issue for CCE. They are also currently the target of a lawsuit brought by the Los Angeles City Attorney, they have had their lease revoked by the Los Angeles City Council, and there is at least one more lawsuit filed by former employees which has a settlement compliance hearing scheduled for August of 2019.
Soon after the judgement was handed down, CCE’s parent company, NFI, announced that CCE would be leaving their current headquarters.
“This is a very sad day for Cal Cartage, our employees, our customers and the Wilmington community,” said Sid Brown, CEO of NFI. “We have been fighting, with the help of our employees, for the past four months to negotiate a deal to keep this facility open long-term. This is not the outcome we wanted. Because of the Teamsters’ efforts, we now have been left with no other option but to shut down the Wilmington operation.”
The Teamsters said in a press release that “NFI’s decision to leave the property rather than bring the company into compliance with all local, state, and federal laws presents a much-needed opportunity for the City and Port of Los Angeles to seek a tenant that will follow the laws.”
Source: overdrive, truckinginfo, prnewswire, prnewswire, maritimeexecutive, justiceforportdrivers, truckersreport, truckersreport, UCLA
Deaconblues62 says
LOL 😆, looks like CEO Sidney from NFI (national freight) pulled the Vinny Barberiono act, WHO, WHAT, WHEN, WHERE,? LOL
Rubin E Nava says
I keep having issues with my current employer who seems to find a way not to pay me for instance he sent me a letter stating that I was late 2 months ago on a delivery and withdrew 275 from my paycheck before he notified me of his intentions and various more examples that I have decided to leave this co.
HAROLD T HART says
Work for someone else. I have never had problems with employers, why, because I pack up my play toys and leave.
Rubin E Nava says
Another I laid 4 days at a rate of 250 per day and again he only paid me 3 days stating that the broker only would pay for 3. I also have a v.o.n.u.- vehicle ordered not used that I went which 150 which I cannot get any reason why he won’t pay. I also feel like his dispatcher Jake is somehow undermining the contracts do to such low pay for heavy and expensive loads.
Grim Reaper says
If you don’t go after them, shame on you. OOIDA would probably be my next call .
Mark says
Gotta love that NFI blames the Teamsters for them for closing up CCE. Your new subsidiary screwed drivers for years and now are trying to weasel out of paying the judgement the court awarded by shutting down. I hope NFI is next and this DB president never gets a job in the industry again.
Buck says
Drivers just need to do there jobs and quit complaining. If you don’t agree with it drive elsewhere
Deaconblues62 says
Do their jobs, not there jobs, LOL 😝, no wonder they picked you for whatever it is you do.
Mark says
Yeah, really Buck. Drivers should just drive the truck and not worry about whether they are being paid fairly, and legally, or not. What a moron…bet you wear a tie to work, if you even have a job.
Deaconblues62 says
LOL 😆
HAROLD T HART says
No, he’s just smarter than you. I don’t need some meat head, fat slob, union jerk to watch over me. Unions have destroyed almost as many jobs as government.
Deryl D ware says
You’re a fool unions help us they make these companies pay us for what we do and there the reasons why the top paying companies pay so well… we need unions to actually work for us and stop these companies from posting billion dollar yearly profits while paying us table scraps
T Barron says
Show me a trucking company that post billions in profits! The only one that I have ever seen is UPS, The others are are not even close to them! I have been in the business since 1988 and I have never seen any trucking company make that much! Maybe $400 million at best! I worked at one of the top three in pay and profit.
Kevin Chevalier says
It’s dudes like this who would haul anything for pennies
, shut up bend over and take whatever is given to ya,
he thinks he’s got a good job
Eugene says
not any job driver have do No .. or you have inshuranc for extra job in treiler .. cost abut 1200 p. montc.
DonTee says
California communism at work. Plain and simple.
Connie Bailey says
Heavy Weight Enterprise/Panther Logistics is the same way as NFI. They classify all their Drivers as Independent Contractors just to get out of paying the IRS Taxes. They also don’t pay with diddly-squat either. That’s why I quit working for them Tax Evading Sandbagging idiots. Plus they owe me over $3,000+ for a month of Loads that I delivered and over $1,000 on Repairs to their junky trucks.
Jay says
What is wrong with you? How on earth you lasted so long with these crooks after what they put you through? Feel sorry for you and all the rest who got screwed by these scumbags.
Deaconblues62 says
NFI was one of the best trucking companies out there when the old man Bernie Brown ran things, Now his Sons Sidney and Ike Brown run it , Well they are super rich guys, they got $89.9 million from the Obama Tarp money 💰 fund, and they didn’t like the restrictions on it so they gave it back. LOL, it’s obvious Sidney and Ike Brown love having it their way or no way.
RJ says
The Supreme Court also held just a week or so ago, that owner ops, and contract drivers are exempt from being forced into arbitration instead of being able to file an actual lawsuit.
Many of you know the arbitration is quite often a sham, and the trucking company usually wins, so this is a very good thing.
If you know or are interested in law, you can find my reading of the supreme courts summary of their decision on almost every podcast source.
“Supreme Court decision syllabus”
The case Was “New Prime v Oliveria”
T Barron says
You are exactly right!! I read that last week and that is going to stop these companies from screwing over people since they can’t use their so called funny business courts that they pay off to get their own way!
PLASE MOORE says
When it comes to getting stuff for free, that exactly what the general public gets, we as trucker work for peanuts, high risk, safety sensitive jobs, so much responsibility it can make you fatigued from dodging ignorance people driving cars,no reguard for safety laws, lane changes and the like. If the the country doesn’t get a hold of the freight rates, and double dipping, by the people who set the pay scale in this industry, you’ll experience more poor souls like uncle buck!!
Scott says
$140,000 to the 14 drivers,
$3.56 million for the lawyers.
Seriously, that amount of money would end up being over $264,000 for each driver. I can’t imagine it would be anywhere remotely close to that.
Good luck!
Kevin Chevalier says
I had this same thing happen to me, hired on as a company driver to a leased
company, after a time the numbers weren’t adding up I was paid percentage per load I kept track of the revenue my truck was earning I kept coming up short on my percentage, it took six months to realize these people were charging me for
fuel needless to say that ended my employment with them
Kevin says
NFI was never one of the best trucking companies out there. When they first started they used O/O’s. Everyone of them in PA got Royally ripped off, deductions from pay galore sometimes no pay. This is the best one, checks would bounce. The list is endless including “who” backed the company who when they started. Colorful families from N.Y. and N.J. Then it was National Freight Inc.
Deaconblues62 says
That’s not the NFI I know, the O/Ops love them and would never leave them.
I drove for them from 2008 to 2012, company driver OTR, I loved them.
When the old man Bernie stepped down his son Sidney took over and went all DEDICATED, he wanted nothing to do with OTR.
His motto was, either go dedicated or find another job, they lost a lot of good drivers, especially on that GOOFY TRADER JOES ACCOUNT.
Darvel says
Time Dispatch in Virginia is doing drivers the same way. Somebody need to investigate them.
Kevin says
If these drivers are represented by the Teamsters, why do the drivers have to sue the company for unpaid wages and misclassification?
If the drivers were shorted wages and their positions misclassified the Teamsters should have solved all the problems.
What’s the point of being in a union and paying for representation, if the union wont lift a finger to help the membership?
Drivers need better representation.
Billy says
A union convinced a small group of ICs there was greener pastures if they sued and tried to organize. The only rrsponse the company being sued can take is to shut down that entire operation. Now everyone at that location is out of a job. I doubt the union explained that possibility to the small group before they took action.
Deryl D ware says
I’m a driver and I agree with what the union did because if they dont want to do right then get rid of them so some one who will do right can move in and take over the freight
Giovanni Socci says
HAHAHA!!!! These lawsuits are so stupid,the only ones that make money are the sh*thead lawyers,the beurocracy.
When all is said and done drivers may get 1k dollars,33% goes to the sh*thead law firm,then taxes…but the amount goes to apellate court almost automatically,it gets reduced to 50%..& so drivers end up with.. peanuts…I laugh at the fools,if they don t like it,leave the company,don t wait on the government to make it better,or fix your situation,that makes you an idiot.
billbonu@yahoo.com says
Dontcha just hate when that happens?
Ri ma says
If it wasn’t for the unions,you wouldn’t be getting vacation pay and or benefits.