Port carriers to pay $6M to settle allegations of misclassification

The California Labor Commissioner recently awarded nearly $6 million to 24 drivers who sued their carriers claiming they were misclassified as contractors.  The late-December judgments came against companies now owned by National Freight Industries (NFI). On Dec. 28, Hearing Officer Melanie Do determined CCX2931, formerly known as California Cartage Express, owed 14 drivers more than $3.7 million. She also held Jim Degraw, the company’s operations and general manager, jointly responsible for violating California’s wage-and-hour laws. Reportedly, this is the first use of a 2016 state law extending liability to the company executives responsible for wage theft. Read more

Has your fleet adjusted driver pay to account for per diem law change?

As detailed in a report last week on CCJ, some carriers are considering — or have already implemented — altered pay packages for drivers to help make up for the loss of the per diem deduction tax benefit to company drivers. To help offset the change, fleets are adding per diem reimbursements to drivers’ pay, which are mostly tax free earnings to drivers. They also provide a tax benefit to fleets, too. Read more

Hours regs suspended in 12 states due to winter storm

Drivers hauling heating fuel and other essential supplies in 12 midwestern and eastern states are receiving a reprieve from hours of service regulations in anticipation of the upcoming winter storm expected in the region. The Federal Motor Carrier Safety Administration issued a Regional Emergency Declaration that includes Illinois, Indiana, Ohio, Pennsylvania, New York, New Jersey, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire and Maine. Read more

Regulatory and Legislative Update January 2019

FMCSA embraces uniformity, cost as priorities in preempting California requirements In a major shift from the Obama administration approach to motor carrier regulation and enforcement, the Federal Motor Carrier Safety Administration (FMCSA) explicitly referenced economic growth and the need for uniform commerce as reasons for preempting the application of California’s meal and rest break (MRB) rules on property-carrying commercial motor vehicle (CMV) drivers. The agency on December 21 granted The Federal Motor Carrier Safety Administration (FMCSA) granted several petitions that had followed similar action in September by the Pipeline and Hazardous Materials Safety Administration regarding carrier transporting hazardous materials. (See the October 2018 Regulatory Update.) ...READ MORE Read more