Photo by Sarah Bennett
The California Supreme Court ruled last week that Port of Long Beach truck drivers working for Gardena-based shipping company Seacon Logix were employees and not independent contractors as the company was classifying them.
The drivers originally filed the claim in 2011 with the State Labor Commissioner’s office, who ruled in their favor on November 16 of that year, ordering Seacon to pay $105,089.15 for violations. Mainly brought forth were accusations that business expenses were not reimbursed by the company, such as truck rental fees and liability insurance costs.
Seacon then appealed, their hearing spanning February 25 to 28 and ultimately resulting in a Long Beach Superior Court judge to uphold the commissioner’s initial stance.
Seacon Logix is now forced to pay some $107,802 in violations including unlawful withholding of wages.
“In this case, drivers had signed agreements labeling them independent contractors but the court saw the truth behind the label,” said Labor Commissioner Julie A. Su. “The court found that the company exerted sufficient control over the drivers such that the drivers were employees of the company and thus, enjoy all basic labor law protections.
“This case highlights the critical need for labor law enforcement, particularly where misclassification cheats hardworking men and women like these port truck drivers out of the full pay to which they were entitled,” continued Su. “This is wage theft and we will do everything in our power to stop it.”
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