A class-action lawsuit was filed Monday in Los Angeles Superior Court against three trucking subsidiaries of XPO Logistics for allegedly misclassifying their drivers as independent contractors, according to reports from The Wall Street Journal and Nasdaq.
The suit argues that drivers for Pacer Cartage, Inc., Harbor Rail Transport and PDS Transportation, Inc., were paid below the minimum wage, and were provided with neither meals, nor rest breaks nor reimbursed business expenses, among other allegations.
“We believe this case is without merit and plan to litigate it vigorously. We are in constant dialogue with our independent-contractor carriers and believe the vast majority of them value the significant benefits that operating independently can bring,” said Troy Cooper, XPO’s COO.
The three U.S.-based trucking companies perform drayage trucking services, where they are responsible for hauling cargo from seaports to rail yards or warehouses. However, the independent-contractor model has come under legal scrutiny. Alleged misclassification of workers has led to other lawsuits, such as those against Uber and FedEx Corp. In December, a judge in California ruled to expand a class-action suit brought against Uber by three drivers who claim to be employees of the ride-sharing company, not independent contractors.
Pacer has already been sued for a similar claim. A $4.25 million settlement, reached last May, is waiting for a judge’s approval.
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