XPO Logistics Cartage, LLC / XPO Port Services, Inc.
Outcome
XPO Logistics settled two California class action lawsuits for a combined $29.5 million in October 2021, resolving misclassification claims from nearly 800 port drivers who were forced to lease trucks and paid below minimum wage after costs.
Details
XPO Logistics Cartage, LLC / XPO Port Services, Inc. — Port Driver Misclassification / $29.5 Million Settlement (2018–2021)
Outcome: XPO Logistics settled two California class action lawsuits for a combined $29.5 million in October 2021, compensating nearly 800 current and former port drayage drivers who were misclassified as independent contractors, required to lease their trucks from XPO, and paid below minimum wage after truck costs were deducted.
XPO Logistics Cartage, LLC and XPO Port Services, Inc. operated port drayage trucking at Southern California ports, including the Ports of Los Angeles and Long Beach. Hundreds of drivers were classified as independent contractors under agreements that required them to lease their trucks through XPO-affiliated programs and pay for fuel, tolls, maintenance, and other operating costs. After deducting these costs from their gross pay, many drivers received effective hourly wages below the California minimum wage, and were denied overtime and required rest and meal break premiums.
Two class action lawsuits were filed in September 2018 in federal court in the Central District of California and were certified for class action status in September 2020. Nearly 800 current and former first-seat port drivers were included in the class.
A California federal judge issued preliminary approval for the two settlements in October 2021. XPO Logistics Cartage settled one case for $20 million; XPO Port Services settled the other for $9.5 million, for a combined $29.5 million. Approximately $19 million of the total was allocated to go directly to the drivers after attorney fees. The settlements resolved claims of willful misclassification, failure to reimburse business expenses, sub-minimum wage payments, and missed meal and rest periods.
Primary Source: In Major Victory For Working People, XPO Drivers Achieve Nearly $30 Million In Settlements After Company Misclassified Its Workers
How Crucible Prevents This
A port-drayage independent contractor risk screener checking California AB5 factors would have identified misclassification at contract formation. A truck-lease cost deduction monitor tracking effective hourly pay against California minimum wage would catch violations before they accumulate across 800 drivers. Business expense reimbursement tracking for fuel, tolls, and maintenance is a Crucible Wage and Hour compliance control directly applicable to port drayage.
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