California
logistics company, Pacer Cartage, has been required to pay back $2.2 million to
seven of their drivers for misclassifying them as independent contractors. This
is a huge victory for truckers who have been battling this lingering problem.
Just last November, truck drivers with Pac9 Transportation, participated in a
one day strike to address the issue of misclassification of being an
independent contractor.
The problem of
misclassification as independent contractors comes down to the California labor laws that protects workers from issues like
wage theft. Since Pacer Cartage classified several of their workers as
independent contractors, it allowed them to avoid paying specific wages that
the truckers should have received. California Labor Commissioner's Division of
Labor Standards Enforcement (DSLE) states that Pacer Cartage should have known
that these truck drivers must be labeled as employees rather than independent
contractors.
The parent
company of Pacer Cartage, XPO Logistics, states that they will attempt to
appeal the ruling made by DSLE, however, odds looks quite slim. Over time,
hundreds of complaints have been filed and just two weeks ago DSLE ruled in
favor of 30 different cases. Workers are appalled by the lack of compliance
with labor laws. One trucker even stated that they make less wages than
McDonalds. This is an interesting statement because even McDonald
workers have seen their fair share of wage theft. According to LA times 2014,
almost 90% of fast food workers claim for wage theft. It is distressing to know
that though there are many laws out there to protect workers, employees are
still being abused.
Corporations
abusing workers in order to maximize profits is an important issue that cannot
be taken lightly. Employees are essential to every organization and
they deserved to be treated fairly. It is imperative that all workers know and
understand California labor law compliance so that these issues may be avoided
in the future. If you are a worker or company that wants to be more educated on
the labor laws or wants to purchase a California Labor Law Compliance Poster,
learn more at USA Labor Law Posters: http://www.usalaborlawposters.com/