Featured Settlement: Truck Driver Reaches $2.7 Million Settlement in Misclassification Case

Edwin Molina v. Pacer Cartage, Inc. (3:13-cv-02344-LAB-JMA )(2016)

Plaintiff, Edwin Molina, a truck driver, filed a wage and hour class action against Pacer Cartage, Inc. for misclassification as an independent contractor. Plaintiff alleged that he, as well as hundreds of other truck drivers for Pacer, were not independent contractors, but employees of Pacer due to the fact Pacer maintained and provided its drivers with company-owned trucks, Pacer controlled each driver's schedule, and that Pacer dictated how and when deliveries were to occurr. Additionally, Plaintiffs argued that the service provided by the drivers was a regular part of Pacer's business, drivers did not incur a profit or loss based on the deliveries, and Pacer provides all equipment drivers needed to perform their work. Based on the misclassification, Plaintiffs alleged that they were not paid minimum wages; not properly paid for sick days, vacation, and holidays; that Pacer failed to provide meal and rest periods; and Pacer failed to reimburse necessary business expenses. Pacer denied the allegations and the parties settled the matter for approximately $2.7 million. Plaintiff was represented Brian Kabateck at Kabateck, Brown, Kellner, LLP. Pacer was represented by the Pasadena, California and Indianapolis, Indiana, offices of Scopelitis, Garvin, Light, Hanson & Feary.