The U.S. Department of Labor has stepped in to protect truck drivers from retaliation by a California logistics company, Cargomatic Inc. The company must stop intimidating drivers who voiced complaints about unpaid wages.
What happened: On Sept. 25, 2024, a federal court in California ordered Cargomatic to halt its intimidation tactics. This came after truckers delivering for Ceva Freight LLC, Cargomatic's partner, raised labor violations.
- These drivers alleged Cargomatic threatened them with $150,000 countersuits for exercising their rights.
- Cargomatic reportedly tried to enforce agreements with indemnity clauses, shifting legal responsibility to truckers.
Official response: Regional Solicitor Marc Pilotin stated, "Employers should know better than to attempt to enforce indemnity clauses that purport to shift liability for wage and other labor law violations onto workers."
By the numbers: Most U.S. employees are entitled to at least the federal minimum wage and overtime pay, as stated under the Fair Labor Standards Act.
While the order serves as a protective measure for truckers, it's part of a larger effort to combat coercive employment practices, according to a DOL press release.
With this court order, Cargomatic is now prevented from using contract fine print to retaliate against truckers. This legal action underscores the seriousness of labor rights enforcement in the industry.