California Cargo Shippers Stuck With Worker Classification Test

Feb. 25, 2021, 12:42 AM

California trucking companies may be stuck using the state’s worker classification test to determine whether drivers are employees or independent contractors after the California Supreme Court declined to review their case Wednesday.

The case stems from the Los Angeles City Attorney’s lawsuits alleging Cal Cartage Transportation Express LLC, CMI Transportation LLC, and K&R Transportation California LLC misclassified drivers who transport cargo from ports. In treating them as independent contractors, the companies engaged in unfair competition by failing to pay unemployment insurance taxes, to withhold state disability insurance taxes, and to provide workers’ compensation, among other things, the city said.


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