Ending an almost 9-year legal battle, Penske has agreed to settle a class action suit against it for $750,000. The lawsuit was largely over driver pay for meal and rest breaks, and now the ATA is worried that other carriers might be vulnerable to their drivers suing for the same thing.
Filed back in 2008 by three former drivers for Penske, the suit alleged that Penske not only failed to pay them for meal and rest breaks as California state law requires, but also deducted pay for rest periods that the drivers were not able to take.
As part of the settlement, Penske will pay the three lead plaintiffs $15,000 each, and split the rest of the money among the 341 other current and former Penske drivers who are part of the class action suit. But 30% of the settlement will go to attorney’s fees, $135,000 will be deducted for costs, and $12,500 deducted for administration costs. That will leave an average payment of $965.11 per class member.
“Penske is pleased to have reached an agreement with the plaintiffs’ counsel to settle this dispute,” the company said in a statement. “We did not admit any wrongdoing and believe that Penske would have prevailed on the merits of the claims, but we look forward to the court approving the settlement and putting an end to this protracted litigation.”
One of the core arguments Penske made against being responsible for paying their drivers according to California law is that the Federal Aviation Administration Authorization Act of 1994 (F4A) bars states from imposing “an unreasonable burden on interstate commerce.”
In the past, this law has essentially given federal law more power than state law when it comes to regulating interstate commerce. But in 2014, according to Law360, the Ninth Circuit ruled that F4A could not preempt the meal and rest break requirements in California since they don’t have a large enough impact on prices or services offered by carriers.
Unhappy with the ruling, Penkse appealed to the U.S. Supreme Court, who denied their petition in 2015.
This isn’t just a problem for Penske however. There are other large carriers who are tied up in lawsuits claiming that they have been ignoring state labor laws. Now that even the U.S. Supreme Court says that F4A doesn’t overrule meal and rest break requirements, and Penske has settled the case, even more lawsuits may be filed.
Without F4A to fall back on, the ATA has been pinning their hopes on Congress to block state labor laws from creating “an impediment to the safe and efficient flow of commerce.” In a rare call for more government intervention, the ATA said that “We are keen to see the federal government assert itself and preempt the patchwork of state-level regulations on the trucking industry.”
Source: overdrive, dcvelocity, lawyersandsettlements, law360, trucks, congress, trucks
Jerry says
So you settled for 750K when you could of easily just resolved the issue up front with the drivers. Oh yeah I forgot Principal comes first….stupid is as stupid does!!!
Bill Compton says
Exactly my thought, they knew California, has congress in their pocket when it comes to anything with unions or Transportation. Only winners in that deal were the ambulance chasers, as usual.
James C says
Paid to take meals and rest breaks…
A guy gets home from the factory, sits down for supper in front of his TV. Does the company he work for have to pay him for it?
These are periods where you are NOT working. Maybe I’m just old school. But you when I was coming up, you did not get paid for NOT working.
michael R says
i totally agree with mr.james c. i been trucking now for over 30 years but before that i worked in a few factory jobs and when you had lunch or any type of break you were not paid for it. since when did it become the employers responsibility to pay for time not working? if everyone would ask themselves if they were in the same shoes as there employer would they pay there employees for non working hours i think that 99.9% would say no.
Max says
The suit contends a driver is never truly off duty. He/she is still responsible for the safety of the equipment and load. The person sitting at home watching TV doesn’t have to worry about the safety of the computer at their desk or the equipment they may work with during on duty (and paid time).
Personally, I compare the driver more to a commissioned sales person. The driver’s commission is earned when the wheels are turning. Sales persons in a motel room are not paid to eat or sleep. Why should a driver?
It’s all part of the gig we agreed to before we accepted our job.
Steve Bell says
Drivers are the biggest and best giveaway artists in the business…Everyone else has been getting paid for ALL of their work and time at least since WWII and all that you guys whine about is being able to work more hours without being paid so the company can make more money…
Try calling some electricians or plumbers for instance and tell them that they have to be somewhere and just stay there and not be able to leave ans then maybe you will pay them if you decide that you have some task …but only for that task…but they still need to remain their and not get paid until you need them to preform your next task…and that you are not going to pay overtime either….Only Drivers give it away like you do…
Just as long as you keep giving it away….why in the hell should they pay anyone???
Jon says
Those traveling sales people do get expense items budgets AND we all get to claim travel Per Diem on our taxes.
Sales people = 50%
DOT people = 70%
Charli says
Don’t even try, they’ll never comprehend.
Jon says
They are comparing to jobs like factory workers.
2 paid breaks and lunch-break in an 8 hr shift.
We are Required by DOT HOS to have a 30min off-duty period.
Rufus Crank says
I am disappointed that the courts dont add attorney’s fee on top of the settlement. In all these lawsuits, the drivers get $325, and the attorney gets $175,000. Plaintiff’s are forced to use council they cant afford,against companies that have crooks on retainer.
Greg says
I’m just wondering if the trucking companies put up the same type of fight when California required the new emissions standards, saddling us with problematic DEF systems, forcing companies to purchase new California compliant tractors. I suspect the trucking companies only fuss when they actually have to pay drivers. If you pull a dry van or reefer for a large carrier…you can do better. Find a different company.
Rolling Ron says
No doubt our pay has always been earned per mile. As we all know the industry has changed radically in the past 10 years. Mostly on the back of drivers, O/Os and independents. Our pay needs to reflect some of those changes. There is no one lobbying for drivers like the lobbyists for the ATA. Yes, I enjoy the job. And I believe we need to do better.
Victor Young says
The ata is gull of ****. They lobby for protection of big fleets. The latest is speed limiters. The only thing they protect is their self interest.
Drivers_Advocate says
Our various respective states independent own trucking associations set the rules benefiting themselves and their representative trucking companies while at the same time took away the labor rights of the workers throughout the years. And at the same time, they condemned and enslaved the lowly semi-skilled uneducated peasant blue-collar driver. You lost because your own state and the capitalist pigs cared not to protect and represent you under labor regulatory laws. Our industry purposefully and intentionally neglected you because you cared not to fight nor were educated to understand the long-term manipulative coercion and manipulation sentencing you to servitude. Time to get an education and move out of this abusive industry. It’s a little too late to be helped and aided by minimal class action settlement funding. American capitalist are cannibals.