California Drayage Firm Fined for Labor Violations

Julie A. Su, California labor commissioner, has won a California Superior Court trial, with the court ruling that Port of Long Beach truck drivers working for Seacon Logix were employees and not independent contractors.

“In this case, drivers had signed agreements labeling them as independent contractors, but the court saw the truth behind the label,” Su said in a written statement. “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.”

The case originated from wage claims filed by four drivers in the Long Beach office of the labor commissioner, also known as the Division of Labor Standards Enforcement. The drivers claimed unreimbursed business expenses and unlawful deductions. Hearings on the claims in November 2011 resulted in a decision requiring Seacon Logix to pay $105,089.15 for violations, which the company appealed with the California Superior Court.  

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