Daily Archives: November 22, 2017

Truck Companies Use Shell Companies and Bankruptcy to Dodge Judgments

By: Bryan M. Roberts, Stark & Stark; Source: The National Law Review; Originally Published: 11.20.17

A USA Today Network investigation revealed that some port trucking companies have used legal loopholes, shell companies, and bankruptcies to escape judgments by labor court judges. The ongoing investigation reveals that some port trucking companies serving top retailers use such tactics to take advantage of drivers.

The investigation examined California labor commissioner and court cases filed by more than 1,100 port truck drivers. Of the almost 60 companies found to have violated the law, at least 12 have avoided the judgments against them by shifting assets into new business names. Some delayed paying and filed for bankruptcy protection or pressured drivers to accept settlements.

For example, in 2015, a hearing officer for the California labor commissioner concluded that Fargo Trucking failed to pay overtime and improperly charged drivers for truck expenses, ordering Fargo to pay its drivers $8.7 million for violating state labor laws.