Pacific 9 Transportation, a port trucking company in California, filed for Chapter 11 bankruptcy protection on Tuesday, April 26, in the Central District of California. The filing comes months after the California Labor Commission ruled for Pacific 9 to pay 38 drivers $7 million in lost wages.
The lost wages ruling came after it was determined the company improperly classified the drivers as independent contractors instead of employees.
In February, the Superior Court of California awarded the payment amounts for each driver. The 20 largest claims range from $176,962.60 to $391,826.94.
Drivers at Port 9 Transportation went on strike over the wage dispute.
The bankruptcy filing will allow Pacific 9 to continue operating and pay its employees. According to the Federal Motor Carrier Safety Administration website, Pacific 9 Transportation employs 100 drivers.
Pacific 9 attorney Vanessa Haberbush did not immediately return a call to Land Line on Friday.
Premium Transportation Services, another major port drayage trucking company, filed for bankruptcy under similar circumstances on March 14.
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