- The California Labor Commissioner declared an additional four drayage drivers working for XPO Cartage were misclassified as independent contractors, American Shipper reported. The ensuing orders, decisions, and awards (ODA's) in their favor total $855,285.62.
- Three hundred port drivers have already been declared misclassified. Attempts by XPO to appeal previous ODAs to arbitration have been unsuccessful, as evidence of employment was deemed appropriately sufficient.
- XPO Logistics, the parent organization of XPO Cartage, intends to take the matter to court, arguing that most drivers prefer to be independent contractors and not employees.
Misclassification in the truck driving business continues to be a sticking point between companies and drivers. Another case of misclassification among drivers is currently underway at Swift, which acquired the embattled Central Refrigerated Services (CRS) in 2015. In October 2016, an arbitrator ruled against Swift, applying the Fair Labor Standards Act (FLSA), which therefore entitles the drivers to additional compensation for hours worked.
The real issue behind this particular case are the conditions under which the drivers have labored. As the arbitrator noted in his decision, CRS drivers were compelled under contract to lease their trucks from a company affiliate, Central Leasing. Having prearranged leasing costs tied to their contracts ultimately meant that drivers ceded control to CRS, significantly limiting their ability to act as independent owner-operators.
Shortly after the arbitrator's ruling, Swift disputed the decision and vowed to “vigorously defend” itself.