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Jun 29

Filing Class Actions Against Wage-Dodging Trucking Cos.

Law360
June 29, 2015

For years, class actions have been filed on behalf of truck drivers against the trucking companies who employ and misclassify them as independent contractors when they are indeed employees. These trucking companies fail to provide meal breaks or rest periods to their truck drivers, deduct business expenses from their drivers’ paychecks and do not pay overtime, all under the guise that the drivers are not entitled to these protections because they are independent contractors.

Because of these trucking companies’ alleged misconduct, countless truck drivers have started filing both individual actions and class actions against their respective employers, and have been awarded both unpaid wages and penalties. As such, the latest trend for these trucking companies to avoid paying wages due to their employees has been to file for bankruptcy. Filing for bankruptcy stays any pending litigation and prevents employees from receiving what they are owed. While it is true that employees have so-called priority claims under bankruptcy laws, they pail in comparison to the ability to collect damages outside of bankruptcy court.