Drivers win historic $30 million wage theft settlement and new CA laws build power for supply chain workers

Four major victories toward building power and expanding protections for workers in our supply chain.
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Friends,

You’ve undoubtedly seen the recent headlines about bottlenecks in our supply chain. Images of the dozens of ships lined up offshore waiting to dock while shipping containers pile up here at the ports of Los Angeles and Long Beach made national news.

Many media reports point to a “driver shortage” among the many things that need to be fixed along the supply chain to get things moving. Rather than a driver shortage, what we really have is a decent work shortage—a shortage of jobs with living wages and safe and healthy working conditions.

For over a decade, LAANE has fought alongside the Teamsters and port truck drivers to address the systemic wage theft and misclassification at our ports that are at the root of the exploitative and inefficient system exacerbating the bottlenecks we are seeing today.

In recent weeks, we've seen some major victories in that fight, building power and expanding protections for workers in our supply chain:

Drivers win historic $30 million wage theft settlement
Just last week, port drivers won preliminary approval in federal court of a $30 million class action settlement ([link removed]) . This is the largest settlement ever at California's ports, and it would resolve class action suits for misclassification and wage theft—including unpaid minimum wages—for almost 800 drivers at XPO Logistics, a massive global logistics company. The drivers have been represented by Class Counsel Julie Gutman Dickinson, the Bush Gottlieb law firm, and co-counsel.

This win, on the brink of trial, is a testament to the persistent commitment of XPO drivers who have been fighting for years to win justice. XPO has faced multiple past final judgments from the courts for wage theft, and this latest win by drivers portends that XPO will only face further consequences under recent laws passed in the CA legislature if it does not end the misclassification of its drivers and come into compliance with our laws.
New CA laws build power for supply chain workers
Thanks to the incredible leadership of Ron Herrera, Director of the Teamsters Port Division and President of the Los Angeles County Federation of Labor, supply chain workers have new protections under three landmark laws that were recently signed by Governor Newsom:

SB 338, championed by Senator Lena Gonzalez, strengthens existing law by expanding the criteria for joint liability. Now, powerful retailers and cargo owners that contract with companies like XPO who have past wage theft judgments will share responsibility for future wage theft.

AB 794, championed by Assemblymember Wendy Carrillo, prohibits trucking companies that are in violation of misclassification laws from receiving publicly-funded subsidies to purchase clean trucks. The goods movement industry impacts frontline communities, from the air we all breathe to the working conditions of port drivers. The only path forward to zero emissions is one that addresses the underlying misclassification of drivers.

These bills mark a new chapter in state policy after decades of advocacy by labor and environmental organizations to advance climate and economic justice goals. In addition to the Teamsters Port Division and California Teamsters Public Affairs Council, we would like to thank our partners Blue Green Alliance, NRDC, Earthjustice, CLUE, and the many other community, faith, labor, and environmental organizations that endorsed the bills for their work in support of these bills.
AB 701, the Warehouse Workers Protection Act, is the first of its kind and an initial step in addressing the reality of algorithmic work in our country. Championed by Assemblymember Lorena Gonzalez, it will protect the over 250,000 frontline warehouse workers in California by requiring employers to disclose quotas while prohibiting them from penalizing workers for rest periods, bathroom breaks, and time complying with health and safety laws.

Over the last few years, we have heard from countless warehouse workers who told stories of dangerous working conditions and inhumane quotas resulting in debilitating injuries. Young workers, many of them heads of their households, were forced to twist, bend, and eventually break their bodies to meet the rising demand.

In addition to Governor Newsom and Assemblymember Lorena Gonzalez, we owe this victory to the tireless work of the Los Angeles County Federation of Labor, Teamsters, Warehouse Workers Resource Center, and the many warehouse workers who bravely spoke up, engaged their representatives, and joined together to say, “Work shouldn’t hurt!”
In Solidarity,

Roxana Tynan
LAANE Executive Director
LAANE is a leading advocacy organization dedicated to building a new economy for all. Combining dynamic research, innovative public policy and the organizing of broad alliances, LAANE promotes a new economic approach based on good jobs, thriving communities, and a healthy environment.
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