California drivers set to receive $30m class-action settlement

Los Angeles, California, USA: Drivers are set to receive nearly $30m to settle class-action lawsuits involving hundreds of drivers in California who accused XPO Logistics of labor violations related to their delivery of goods from Los Angeles-area ports.

XPO Logistics has agreed to pay after a federal judge approved the settlements on a preliminary basis in answer to allegations that XPO subsidiaries perpetrated misconduct that included misclassifying workers as contractors, failure to pay minimum wages and wages for missed meals and rest periods and failure to reimburse workers for business expenses.

The International Brotherhood of Teamsters union, which has been trying to organise XPO workers for years, lauded the settlements — which they said would benefit nearly 800 current and former port drivers. The union has vowed to keep fighting for the rights of XPO workers, including those based in Connecticut.

“Misclassification of workers is all too common in the ports of Los Angeles and its surrounding areas, and while XPO is notorious for doing this, there are far too many employers still cheating workers out of the pay and the rights they deserve,” Ron Herrera, director of the Teamsters’ port division and vice president of its western region, said in a statement.

XPO officials denied all liability and said the company does not have to classify the port drivers as employees. They said many independent contractors have told the company in recent years that they appreciate the flexible work arrangements provided by being designated independent contractors, and that independent contractors who want to work as full-time employees can always apply for truckdriver openings.