A Los Angeles federal judge has signed off on a $4.2 million settlement between long-haul truck drivers out of ports in Los Angeles and San Diego who drove for STG Logistics, one of the world’s largest trucking companies.
The class action suit, removed to federal court in February 2023, sought relief for alleged wage/hour violations under California’s Labor Code and related laws. STG has also agreed to end its independent contractor owner-operator model in California, plaintiffs’ attorneys said Monday.
In January 2022, the International Brotherhood of Teamsters announced the firm’s port and rail truck drivers, including personnel in San Diego, filed for an election to form a union.
The drivers said at the time that the company misclassified them as independent contractors, denying them health insurance, paid sick leave, overtime pay and the ability to form a union.
Attorneys said class members who drove for STG and XPO Logistics‘ North American intermodal shipping business, which was sold to STG in 2022, will make over $7,500 on average after accounting for attorneys fees and other deductions from the settlement.
U.S. District Judge Andre Birotte Jr. granted final approval on June 25.
City News Service contributed to this report.
