Facts

Arnold Garcia, on behalf of himself, all others similarly situated, and on behalf of the general public, brought a class action against McCollister's Transportation Systems Inc., McCollister's Global Services Inc., and McCollister's Auto Transport LLC, alleging various Labor Code violations. The class included all persons who contracted with defendants as an owner/operator to haul freight, who worked a majority of their time under the contract in California and/or their base of operations in California, whom defendants classified as independent contractors, and who drove in California from September 10, 2017, through January 7, 2023.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants failed to: pay all straight time wages, provide meal periods, authorize and permit rest periods, provide itemized wage statements, pay all wages at the time of termination of employment, and reimburse business expenses for its non-exempt California employees during the relevant time period. Further, plaintiff alleged that defendant willfully misclassified its employees as independent contractors.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Result

Defendants agreed to pay $400,000 to settle all claims.