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California Trucking Company Caught Improperly Classifying Drivers To Avoid Paying Overtime

According to a PR Newswire release, drivers for Seacon Logix were made to sign agreements, labeling them as independent contractors. Consequently, making them ineligible for overtime pay.

However, when 4 truck drivers filed wage claims with the Long Beach office of the California Labor Commissioner, it was determined that Seacon exercised sufficient enough control over its drivers, making a designation of independent contractor invalid under California labor employment law.

The drivers reported to the Division of Labor Standards Enforcement (DLSE) that business expenses were not reimbursed by the company, together with deductions deemed unlawful under California state labor law. Those deductions, it was alleged, included weekly truck rental fees and liability insurance costs, according to the report. Seacon Logix was required to pay $105,089.15 for violations of unlawful withholding of wages, interest and waiting time penalties under California prevailing wage law. Seacon Logix appealed to the Superior Court, but the original finding was upheld.

If you have been incorrectly classified by your employer and you feel that you are owed money, please give my office, The Law Offices of Todd M. Friedman a call today at (877) 449-8898.