Facts

Labor Secretary Hilda Solis filed a lawsuit against Shippers Transport Express Inc.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendant was a trucking and freight transportation company that employed drivers to transport containers. Plaintiff further alleged that defendant required its drivers at its Oakland facility to enter into contracts that misclassified them as independent contractors. Plaintiff further alleged that defendant failed to pay many of its drivers minimum wage.

DEFENDANT'S CONTENTIONS:
Defendant denied the allegations of plaintiff's claims and asserted various affirmative defenses.

Result

The parties settled the case and the court entered a consent judgment and order. Pursuant to the consent judgment, defendant was ordered to reclassify drivers at defendant's California facilities as employees. Defendant was also enjoined from paying its employees less than the applicable minimum wage rate. Defendant was also ordered to pay a total of $188,587 to the U.S. Dept. of Labor, which consisted of unpaid minimum wage compensation and certain reimbursements, as well as liquidated damages.

Other Information

FILING DATE: June 13, 2013.