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.