XPO Units Face New Worker Classification Suit
A California law firm has asked a state court to certify a class action suit against Pacer Cartage and two other XPO Logistics businesses, claiming that the carriers misclassified drivers as independent contractors in the latest such case in the nation’s largest state.
Kabateck Brown Kellner LLP of Los Angeles filed the suit that also includes PDS Transportation and Harbor Rail Transport, two other drayage carriers in Southern California. The filing in Los Angeles Superior Court didn’t specify damages.
Brian Kabateck, managing partner of the firm, told Transport Topics that the case was brought because drivers for the carriers should have been classified as employees under state law. He also said California law is stricter than other states, which can make it easier to demonstrate that workers are employees and not contractors who are paid less and are not entitled to benefits.
There have been a series of cases in recent years in California that address worker classification, including some heard by the Ninth Circuit of the U.S. Court of Appeals. In one of those cases, FedEx Corp. agreed to pay $228 million last year to settle an employee classification case at its Ground unit.
XPO Chief Operating Officer Troy Cooper said in a statement that the company believes “the case is without merit and plan to litigate it vigorously. The vast majority of [independent contractors] value the significant benefits that operating independently can bring.”
Employment practices at Pacer and other drayage companies also have been challenged in proceedings before state agencies.
