Understanding Labor Laws | California

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/