Who’s liable now? State warns distribution hubs to avoid working with truck fleets that owe back wages

The state agency that enforces workplace law has issued a warning to distribution facilities that they could be on the hook for future fines if they do business with trucking companies that violate wage laws.

The warning, issued Jan. 2 by the California Department of Industrial Relations and based on a law that went into effect the previous day, names 19 trucking companies that pick up containers at the ports of Los Angeles and Long Beach. These companies owe more than $1.7 million in back pay, fines and other charges related to employee compensation.

The warning, however, is for the trucking firms’ would-be customers. A retailer or distribution company that enters into a contract with these trucking companies would share in the blame – and the cost – if future violations are discovered.

“Companies are on notice that if they contract with a known wage thief, they will be held responsible for the exploitation of the drivers who carry their goods,” Julie Su, the California labor commissioner, said in a statement.

The outstanding judgments include unpaid wages, overtime pay, expenses and workers compensation payments. According to the state’s press release, some port trucking operators have misclassified employees as independent contractors to increase their profits.

Several truck fleet operators owe hundreds of thousands of dollars for multiple, outstanding violations. Krisda Inc. of Long Beach owes about $392,000 for four violations. Pacgran Inc., with addresses listed in Diamond Bar and Long Beach, owes more than $352,000 from five cases.

HRT Trucking, one of two companies listed that are not from Southern California, owes about $175,000 for three violations. The company’s home address is Houston. Absolute Intermodal in Phoenix owes about $124,000.

Other violators cited, with approximate amounts, are:

• Perez Brothers Transport of Compton ($141,000)
• MSTL Inc. of Gardena ($80,000)
• LHB Trucking of South Gate ($80,000)
• DLS International Services of Carson ($72,000)
• Sprint Transports of Hacienda Heights ($61,000)
• Climan Motor Freight of Long Beach ($28,000)
• Harbor Choice Express of Gardena ($27,000)
• GTD of Santa Fe Springs ($26,000)
• Accolade Management of Gardena ($25,000)
• Expedited Freight Services of Paramount ($24,000)
• JD & LA Trucking of Wilmington ($18,000)
• Coastal Trucking & Distribution of Gardena ($13,000)
• Excel Trucking Services of Burbank ($9.000)
• Container Intermodal Transport of Wilmington ($8,000)
• Golden Tranz of Burbank ($6,000)

The warning to warehouse operators that could be prospective contractors with these trucking firms is the result of a new labor law that went into effect Jan. 1, specifically drafted to help workers who drive trucks based at the ports, DIR spokesperson Jeanne-Mairie Duval said in an email.

According to the DIR statement, since 2011 more than 1,000 claims for unpaid wages have been filed, with 448 of them resulting in decisions favorable to the truck drivers, resulting in more than $50 million in wages owed.

The $1.7 million in fines cited in Wednesday’s announcement are based on cases that have already been decided by the courts but have not yet been settled by the offending companies.