My lawfirm has filed a nationwide collective action under the Fair Labor Standards Act and a class action under various state payroll deduction laws, to remedy SWIFT and Interstate Equipment Leasing Co. treatment of truckers as "independent contractors" when by law these truckers should be considered to be "employees." The independent contractor agreement is challenged as an unlawful contract by which Defendants together force truckers to work only for SWIFT for a lengthy period of years (though Defendants may fire them at any time). The form contracts shift the business risks of the economic downturn to employees, makes the employees cover SWIFT's costs for fleet inventory, insurance, tolls, taxes, and equipment, and makes the employees pay various fees to SWIFT that enable SWIFT to exact further profit from employees who cannot leave their contracts without crushing financial consequences.
The case is brought in the U.S. District Court for the Southern District of New York and will be tried to the Honorable Richard M. Berman. U.S. Magistrate Judge James C. Francis is also assigned to the case. Plaintiffs seek to recover the full panoply of expenses that Swift and IEL shift to its "owner operators" plus liquidated damages which may equal these deductions. The deductions for which plaintiffs seek recovery include truck lease payments, insurance, tolls, accounting fees, bond, equipment such as Qualcomm, etc. Plaintiffs seek unpaid wages, liquidated damages, interest, costs and attorneys' fees as well as declaratory relief under the FLSA and state wage laws.
Truckers who signed leases with IEL and an Independent Contractor Operating Agreement with Swift, and who drove for Swift in the last 3 years may join the case.
Dan Getman
Getman & Sweeney, PLLC
9 Paradies Lane
New Paltz, NY 12561
845-255-9370
New lawsuit against Swift by "owner operators"
Discussion in 'Swift' started by Dan Getman, Dec 24, 2009.
Page 1 of 2
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
I am certainly pulling for you. Not only Swift, but there are several more out there that the "contractors" should be classified employees. FedEX is probably the main one. But even looking away from the big ones, do you realize how many drivers there are that are paid on a 1099? I cannot understand how the IRS allows so many to get by with this.
-
Good luck with all that!
www.youtube.com/watch?v=hiLfB3mP2UwJustSonny and SprkPlug62 Thank this. -
one thing you will find as a little new ploy is they set up a separate leasing company etc...
Good Luck -
Man if you can take down swift on this issue there will be a lot of other trucking companies in grave danger!!!!
Large and small. -
-
The part that really sucks about it is when they (linehaul) terminate you, regardless if you are current on truck payments, they (IEL) put you in automatic default. They are in actuality two separate contracts. I always thought that the same person owning two companies under the same umbrella of a primary corporation was a conflict of interest. I'd be interested in finding out how many drivers were "let go" nearing the end of the lease contract.
I thought I'd read somewhere that Swift buys these trucks they lease to drivers? If that is true, then by the end of the lease the l/o has more or less paid for the truck since I can't see Swift not making any money on this if they buy said truck at cost and pass on the truck payments to the driver. -
Have you ever been an o/o or l/o for Swift? They classify lease operators as owner operators. If that's the case where is the autonomy of said classification? According to the IRS there is certain criteria that needs to be met in order for you to be classified as an independent contractor, this doesn't fall in line with Swift's lease contracts. You are under their thumb at all points which doesn't make them lease operators or owner operators, it makes them employees. This has been a long time coming.
We aren't involved with this lawsuit, we have our own complaint with OSHA for wrongful termination. But I think that a good house cleaning is in order for many of these large companies who kick around the little guy just because they can. They need to be made accountable for their questionable business practices.
My hubby did very well as an o/o. He worked very hard as an o/o and when he was a company driver. The only thing he did wrong in the company's eye was in doing the right thing and as a result we lost everything we'd invested in.
Not all gripes come from crybabies. Sometimes they are legitimate. We "crybabies" can't all be in the wrong, you know. I admit some are not legitimate and is the fault of the driver, but not in every case.david07003 Thanks this. -
But working strictly for one carrier doesn't mean an o/o is n employee . Look at the case of FedEx getting out of classifying FedEx Ground operators as employees by just requiring them to have multiple route contracts .
But you said yourself your husband was happy and doing well as an l/o . How would he feel about someone forcing him to be an employee ? -
Rick look at what the IRS says about what identifies an independent contractor and yes, this verbiage is used in Swift's contract. If Swift could come in and take everything away from him on a whim he was an employee, which means Swift didn't take out the necessary taxes nor paid for half of SS/Medicare. Swift has everything to gain and nothing to lose on a lease contract, hubby lost everything he spent 4 years working toward owning that truck. They just took $100,000 away from him, if this was that easy for them to do then he was more an employee than not, which means Swift had an unfair advantage over the l/o's. I personally would like to see Swift, with their nefarious business practices, taken down a peg or two.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 1 of 2