XPO Logistics, the Connecticut-based corporation that bought Con-way last year, is facing a class action lawsuit claiming three of its trucking subsidiaries misclassified drivers as independent contractors, according to Los Angeles Superior Court documents. At least one other trucking company – Intermodal Container Services Inc. – is also part of the lawsuit.
The court documents reveal the defendants to be Harbor Rail Transport, Pacer Cartage Inc., PDS Transportation Inc. and Intermodal Container Services Inc. One plaintiff is named on behalf of himself and all others similarly situated.
The suit claims the companies did not pay minimum wage, provide meal/rest breaks, reimburse business expenses, pay overtime/double time wages and committed other labor law violations. In total, the lawsuit claims violations of 10 separate labor laws.
This past November, Land Line reported that port drivers conducted a five-day strike and picket at XPO Logistics. The strike was over misclassification of drivers. At the time of the report, approximately $60 million for 550 claims against various companies were pending.
Last September, XPO announced it would acquire Con-way for $3 billion, sending shockwaves across Wall Street. XPO Logistics began in 1989 as Express-1 Expedited Solutions and was purchased by Segmentz in 2004. XPO completed its first acquisition in 2008 with Concert Group Logistics for $9 million in cash and the issuance of 4.8 million shares of XPO stock. Since then, XPO has acquired nearly 20 companies, with six of those in 2013 alone.
Neither XPO nor the attorney for the plaintiff could be reached for comment.
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