Mega-carrier Swift Transportation has just lost a pivotal court decision in a lawsuit brought against it by five former owner-operators at the company over their employment classification. The decision could possibly have huge ramifications for up to 15,000 former Swift drivers, and even owner-operators with other companies. Swift now may have to pay drivers millions of dollars in back wages.
On January 5th, U.S. District Court Judge John Sedwick ruled in favor of the owner-operators who claimed that Swift had illegally classified them as independent contractors instead of employees. As employees, Swift would need to have paid drivers at least minimum wage, and drivers would have been eligible for benefits including health insurance.
During the legal battle, Swift argued that drivers could choose to refuse loads, or take loads from other companies. They claimed that this allowed drivers to make their own schedules, which would classify them as independent contractors. The judge however ruled that due to the terms of their lease agreements with Swift, the drivers “as a practical matter, had to drive for Swift,” and that because of that, the company was in total control of their schedule, making them employees.
It is yet to be determined how much each driver will receive in compensation and Swift is currently appealing the decision.
“This is a big milestone,” said driver attorney Dan Getman according to the Wall Street Journal. “Now we’ll find out how to go from here to a final resolution.”
Late last year, Swift estimated that it would need to pay $22 million to the 1,300 class-action members who brought a suit against Central Refrigerated (which Swift Transportation now owns). That works out to just shy of $17,000 per driver. Since Swift is the largest truckload carrier in the United States however, the number of drivers who could file claims against them could be as high as 15,000. It is not known what amount will be assigned to each driver, but if it is similar to the Central Refrigerated case, Swift could be looking at a payout of a quarter of a BILLION dollars.
It is worth noting however that the lawsuit that Judge Sedwick ruled on only concerns 5 specific drivers. In order for all 15,000 other drivers to see any payment from Swift, a new lawsuit will have to be filed on their behalf.
The ruling came just a few days after Swift Transportation founder (and newly minted billionaire) Jerry Moyes stepped down as CEO of the company. According to the SEC filing, Moyes will stay on as a board member, taking a salary of $200,000 per month or $2.4 million per year.
Blood suckers each and everyone of these companies!!!!!
They really are.
You know what this means?! It is not just Swift that is on the hook! It’s all the other mega companies: Schneider National, Warner, JB Hunt, England,…you name it. WOW!
I know right?? Swift wasn’t the only company that did this.
Better throw in interstate distributor Inc too
FedEx ground also. Owner operators put on as many trucks as FedEx approves. Driver’s are hired by the owner operator and are at the mercy of that owner. I daily would put in a minimum of 1.5 hrs of work prior to getting driven mileage for my pay. 15 years, that’s a lot of back pay owed me.
You forgot Prime and Knight. The owner of Prime is a very rich man. But unlike his competitors, he doesn’t have his nuts in one basket. It’s all subsidiary companies that own all of Prime’s trucks.
A known fact Knight is actually partners with the 3 sons of the founder of Swift transportation.
Yes! I’m working for a company now who, think they’re going to continue with their illegal b.s. Hire drivers on, as lease operators. Stating $.90 cpm. With that .90 each load/trip first has the miles calculated empty/loaded to pick up-delivery. The fuel approximated for entire trip, is then subtracted from wat the load milage would pay, for the load/trip. Example: Load is 1975 miles. 1975 X $.90= $1777.00 The fuel for trip is calculated as being aprox $1056.63. That fuel amount is placed on fuel card (only for fuel!!!!). After trip, drivers do not get wat is left of that fuel $$, paid to them. Driver may have concerved fuel enough where, of that $1056.63, he saved $100+ dollars on the trip. The company is obviously continually, rolling over the saved fuel money & or, pocketing it themselves. I intend to find out….
We lease now and loads have dropped to almost no pay. But because of the way the lease is set up we can’t go anywhere to make up the money loss. But we still make that weekly truck payment. It’s BS!
We have to much investment to just change jobs.
Another thing is we run husband & wife team. They only put his name on lease papers..but my money pays truck payment the same as his.
Newly minted billionaire getting a salary of 200,000 per month?! And you wonder what’s wrong with the industry ?
It is what is wrong with this country.
Think of it – $200,000 A MONTH!!! I struggle to make ends meet and pay my taxes each and every year which is yet another struggle. Yet I would bet that this fat cat just like trumpet pays zero taxes. I will probably not have anything close to 2k when I am forced to stop due to ill health. meanwhile this creep has that every single month. Probably has a gambling problem. They certainly lost this hand.
That’s exactly what happened to me , I was forced out due to ill health, Swift said I still had my job, they turned my truck in as I had to have immediate back surgery, my Dr gave the ok for me to go back to work, Swift sent in there paperwork to the Dr and I didn’t pass , so I was let go terminated, what a racquet, the rich get richer and the poor get poorer.
It’ll be a cold day in Hell before these guys see a dollar of this money. This ruling will be appealed, swift could be sold, bankrupted etc..The Lawyers will drag this out for years…
Swift will not go bankrupt. Swift is worth a lot more than $250 million. Swift is also self insured.
Swift is publicly owned. They are just hurting investors if anything.
Work for them a year like I did and see if you dont open your mouth about being underpaid.
Thats what they said about consolated freight ways.
Never heard of them.
Cornflake. Consolidated Freight Inc.
If you haven’t heard of consolidated freightways you haven’t been in the industry very little long
Got to agree Bill. They will be dead and buried by the time this gets paid as if it ever will.
Funny how you should mention that in January, and 3 months later it’s a reality. Merger or Take Over?
Highly paid execs don’t leave companies when it’s a merger.
Technically if there is a lawsuit nothing can be exchanged paper or title to a company. They can not sell a company with a lawsuit pending.
I can almost hear the other companies re-drafting their lease agreements lol
They wouldn’t have to if their lawyers did their job when the contract was originally drafted.
My lease with Landstar states in bold print that I am not a Landstar employee. However, Landstar drivers can only haul for Landstar agents. My truck is dying. I need tbe money
I would think your response is wrong as they let you haul freight from approved carriers on there list. I am leased to Universal but haul Landstar freight quite often and I know they do the same thing.
I work for them 11 years ago and I knew something was Fowl in Phoenix. What goes around comes around and God does not like ugly.
I’m working for a poor excuse for an Owner Op that’s trying the same bull with me and he keeps trying to 1099 me and next week I’m going to find another carrier to work for.
These Carriers that keep trying to avoid proper responsibility for their workers by playing these games need to be shutdown! Period end of story!
And Uncle Sam needs to put em in jail too for even thinking about trying to avoid their responsibility to their drivers and people wonder why rates won’t rise yet the same rats that are getting away with this are the same that keep running to DC to get all types of laws passed to drag down the little man that plays by the rules??? Pathetic!
You are right
The very first line in my JB Hunt contract states that I am not an employee and a few lines later says this is an at will contact and can be terminated by either party with notice. All the addendums in subsequent pages spell out that you are clearly not an employee…
Swift was my first trucking job back when I got my CDL in 2010. For the 9 months I was employed there I was hearing from numerous drivers that the pay scale was off.
I’ll gladly take whatever I get from this.
Swift pay scale has always been off cause they trained you and baby sat you through your diaper months. What did you want Top Pay?
I wasnt talking about my training months. The months where I was on the road actually working, The miles they pay me doesnt match the miles I drove.
Cause they use hhg and not practical/actual miles.
Try CR England our for size !! They will put you into debt while you are working like a slave. Talk about shopping at the company store. All these companies are very reminiscent of the old coal mines and the fight that took place at Matewan. It is the very definition of the words “wage slave”.
Pretty much that is all carriers none that I know actually pay you for the amount of miles you actually run hell on weeks where I do eventually put in a 3000 mile pay week I pretty much put in about 3300 to 3500 and we have to always log everything we do because of dot saying if we are away from home we are working so then they should start paying us for that
I agree 100%!!! They should have to pay us for on duty time and mileage. That would keep everyone legal and logging all on duty. Would stop companies from taking advantage of drivers and paying them a measly $70 for a 240 mile load which actually took 12 hours of work to pick up and deliver. We do get ripped off a lot. Hourly pay+cpm for all drivers!!!
Sliding pay scale
Wonder if this why I was just fired last week from swift as they said was from log violations
Well, in the end, they will lose the independence that comes from being an “independent contractor”. They will be left with less freedom to make their own load and schedule choices. They will be what they claim to want to be. Employees with a truck payment, and they will deserve it. Hope the fallout doesn’t effect the rest of us, leased to other companies, too severely.
I think as long as you own the truck and your name is on the title also you should be fine. This will effect the renta truck guys more than anything. When your on title as leese you have skin in the game.
I think that this is the lease purchase they are referring to because I was with central refrigerated when they first got the kenworth w900 back in 2005 and they pulled that crap with me
Not unless you paid off the truck. The company you lease from owns the truck.
U get RAND MCNALLY MILES.NOT PRATICAL MILES.IT STINKS.EVERY PROFFESSIONAL DRIVER LOSES OUT ON RAND MCNALLY.NOT SO WITH PRATICAL.A DIFFICULT LIFESTYLE TO SAY THE LEAST.I STAY IN COMBAT MODE 24 HOURS A DAY.
I was owner operator in swift transportation for over five years my home terminal was Wilmington,CA. containers division, and I had to take a mandatory logbook class in Phoenix,AZ.after my class I asked for a load going back to CA. they sent me another load to a different place and I refused the load and they fired me immediately they forced me to give back the plates and permits under menace to call the police,I had to come back to CA bobtail and without license plate,sad but true.
Too many drivers and society as a whole are looking for handouts, something for nothing. Furthermore , this entitlement generation and epidemic is further fueled by greedy bottom feeding lawyers who advertise every where you turn.
Not to worry though, I am confident Swift will appeal and the Judge Sedwick’s ruling will be overturned.
It’s disturbing that alot of workers side and defend big corporations that screw them over.
Swift along with many other these major trucking companies short many drivers on pay they work for. This lawsuit isnt just about owner operators. They’re also suing swift for using a payscale that pay less than what the driver actually drove.
Its the main reason why I went LTL/union. Alot of people wont stand by and let a multi-billion dollar company screw them over and applaud a CEO taking home a monthly 6 figure paycheck
Mr. Bell,
We are on the same page when it comes to Monthly Six figure golden parachutes for PT work.
I agree you always have some company people who say that is the way it and always will be and there is nothing you can do about it ,your a trucker and you are going to get screwed over so just accept it as hard work.I would like to see the trucking industry taken completely down and start over again and this time no phony mileage or percentage pay where you will never be payed for all you do but pay by the hour then you would see the delays and bad dispatching come to a halt.
I do agree there are way too many frivolous law suits going on. I’m currently being sued by my dad’s ex girlfriend for his estate. He passed away in a tragic car wreck in 2014. Arkansas has no common law marriage so her lawsuits shouldn’t even go through. However, greedy lawyers and judges tend to think alike. Corruption abounds.
This will ABSOLUTELY be over turned. SWIFT will NOT pay any money to anyone as a result of this lawsuit. If you believe otherwise, you are wrong !
Where I have my truck signed on I’m said to be independent contractor, but cannot haul freight for anyone but them, do not have choice of loads and have to take what they give me called forced dispatch , I found a load one time and they got pissed told me I do not call the shots
Actually the better way to look at it is the company has felt entitled all along to “rape” the drivers with these so called “independent driver” agreements.
It’s about time that a court stepped in and said, no more.
Perhaps this is what’s behind Moyes stepping down, though don’t worry that he’s going to be hurting, considering his 200k a month “golden parachute.” He’ll do just fine.
One possible negative outcome from the decision is that this might really push the trucking outfits toward the driverless truck technology, but of course, most have probably starting thinking that way already.
Driverless trucks are reality already. One has already made delivery. But CDL driver still has to be in the truck. Plus a computer can’t break the seal, remove the lock, open and pin the doors back, slide the tandems and dock the truck. Human still has to. Plus tankers hookup and pump. Flatbeds, tarp, chain and strap.
I’d like to see a computer do all the physical labor. It’s not just jam gears and turn the wheel.
COMPUTER DRIVEN TRUCKS.WHATS LOGICAL BEHIND IT.A HUGE SHORTAGE OF DRIVERS.NOT FOR ME.COMPUTERS SHORT CIRCUIT AND CAN BE HACKED INTO BY MOSCOW.
Swift, Schneider, Werner, etc., deserve what they get, they treat there employees like modern day slavery, they created this mess with deregulation and made being a truck driver was something anyone can do. There accidents prove thats not the case, give them enough rope maybe they will hang themselves
Being leased to someone is not being an Independent Contractor. Having your own authority paying your own insurance, getting your customers is what makes you”Independent”..!!!!
right on kevin,
Yea, a driver can’t even make enough to support his or her family and has to stay out on the road away from family gathering and holidays and drive in some of the most unfavourable conditions and fight to get a shower and stay in compliance with federal regulations to keep from getting citations usually due to piss poor maintenance. Finally someone had defined what independent means..thank you. You must learn to Read the fine print. Your own authority is the correct answer.
YOUR IQ IS UP TO PAR.
I make a lease payment
I pay collision insurance, bobtail insurance, Occupational insurance, prepass, Qualcomm, fuel, all maintenance, yearly FHUT, fuel taxes, and the only thing I don’t have is my own authority. Now tell me how that’s any different than most owner/ops. Aside from the fact that I don’t have to deal with load boards. A lot of owner/ops lease on with other companies.
You all know you don’t get paid for the miles you drive. Even practical miles are off by 10%. Even though I can tell them door to door what the miles are. The companies insist they can’t tell what the miles are accurately. GPS! The company people use it on vacation, that few of the drivers get to take!
Owner ops and leases are endangered always.Check your last settlement
Ther all crooks and back stabers not only swift its Prime inc to and Werner and look how arrow did there drivers money hungry bums
These companies are just trying to offset the cost of doing business with these people saying that you can own your own truck and have your own business. When in reality your just paying twice as much for the truck and paying all of the maintenance. Like PT Barnum said there is a sucker born every minute. I hope this gets the industry straightened out for the better.
and bart? dude its not even going to be heard. wtf a bunch of dumb ass men. look up the difference between, subcohtract, llc, corperations, etc…
truck was owned hy company, thats it a corperation. with that money it would be a c corp. so that means alll responsiblity like, transporting drugs, children, dead bodies going to feed mill, and lets say, immigrants. welcomed with bonus. today, because american are fat and dont work, the cost everything is high. but he is-making millions a month and driver are making less than minimum wage, and dont know anything about driving, thats food and drug, depaetment of transpertation, then irs, social security, federal employment and guide line osha, crossing states, special liscence, secretary of state with no speak english, no investers becaure it doen not go on walstreet, becaures its not a corperation, but some fat corrupt mother fucker, that i better no wait, i want to help. dumb asses. about department of transportation, scales, Food and drug, peir diem, how many drivers etc….see the attorny took the case, because he is a dumb ass too. see the company is apealing thats good thing, its going federal. why because feds are in northern colorado anyway, and i just had been offered a position at public defender office. they said im real smart boys. youll read about me real soon. bye.
It is a small step in accountability. The unfortunate thing is this lawsuit will be drug out, as stated previously, by big corporation. The driver is always the last concern or care when it involves these behemoth organizations.
Lets get one thing straight. Big companies are in bed with one another and are always looking out for their best interests. Their main goal is to grow larger, buy out smaller companies, push owner ops out of business and monopolies the transportation industry.
Here are some key facts to consider. One, these organizations have lobbied the government for years to institute regulations that prevent drivers from making money (so they can’t branch out on their own) and to push the small fleets and individual truckers out by making costs to operate unsustainable for small organizations. Two, they drive freight costs down by lowballing bids to levels that make it impossible for smaller and independents to compete. Three, they claim there is a driver shortage because they want to flood the market with drivers (theirs) so they can take over more loads and not pay them a reasonable rate. Four, they’ve developed an ingenious way to get people to cover their overhead costs and pay them less of a rate than a company driver (IC/LP). There are many other examples that I can’t think of at the moment, but you get the gist.
The only way to stop this from continuing is the driver. I don’t care if your a company, owner op, independent contractor, or lease purchase driver, tenured driver or green. We need to come together as a family and have one voice. We need to use platforms such as this and others to come together. An enemy divided is easily defeated. As long as we stay as individual drivers concerned abou ourselves we will continue to see this industry go down the tubes. We will continue to see longer days on the road with less pay.
I agree with you 100 %. We need to come together as one united group.
Not even true, the feds are giving grants out paying for education, this is why this is a shit hole country, yo know nothing. Go back and be pimping.
No big company is going to pay you for each & Every actual mile you drive. Always figure 14 % Of what u drive is free miles and time. The reason for this is because most of them pay from zip code to zip code only.
That is pure hogwash. Zip to zip is just another way to rip you off. On a run from say Seattle to Miami is close to 3500 miles. I was paid for 3000. So your telling me there is a 500 mile zip code variance? Please. Just like the ones who claim to use household movers guide although they don’t haul household goods. These companies know exactly how many miles it is dock to dock or address to address. Pretty soon they’ll tell you we pay as the crow flies. Don’t be stupid. Your getting ripped off
why are you working for this companies in the beginning and why the hell you are suing them now? Why aren’t you walked away when they punched you? Why you waited until they stab you? You have to be the smart guy and know how to ripoff the guy(company)with the money. If we all use our resources wisely there wouldn’t be government babysitting us.
Prime should be sued next, lease ops can not haul other freight, and have no choice on loads. Would fit perfectly in this ruling. ..
i’ve yet to find a trucking Co. or broker who is hounst in the least. Every one of them…LIE…Cheet…And STEEL….in my experance not one trucking Co, big or small can be trusted….and brokers are among the worst theives…they should ALL be auited…and then be made to pay the drivers back twice what they skim plus interest…then be black balled…never able to work in any type of trucking feild again..no better yet..make them drive under the same condistions they put on us….for a minimum of 5 yrs…
I’ve been driving tractor trailer for 44 years had the old class D 1971 class A CDL grandfathered 1989 this is America Trucking industry the trucking industry is going to fall there’s no great trucking company to work for in America they’re all vultures.
Western express is next in line for a audit in cheating thousands of drivers out of wages and home time. I hope they get drug tested too. Beware of western express, will rob you blind.
Warren transport would not let you take a load that didn’t come from their dispatch. Even if you had to dead head 800 to get a load.
the claim that drivers could go outside the company to get loads was a tiny clause in their contract with such financial penalties and obstructions that you knew the company put this in the contract for possibility of using it as part of a claim to back a legal argument. No driver would go outside the company for a load for fear of severe backlash and devastating financial consequences. Swifts arguments were lies and 250 mil is a pitiful amount considering how their lies have built them financially into such a conglomerate. Their lies have benefited them at the expense of destroying many a drivers careers. The entire swift growth began on back stabbing and throat cutting practices and this penalty is a mere rap on the wrist..
CRST should also be in the mix if trucking companies being sued.
I received a letter in the mail last summer about a class action suit against swift transport . Does anyone have a number for the person to contact about the status
I am one of these drivers in the lawsuit against Swift, I was told to show proof of overtime worked by supplying my settlement for the nine years I was an owner operator with swift, three days ago Monday, 11 March, I was told that Swifts records show that I did not work the hours that I say I did and I have proof, so there for I will probably not be compensated , word True, I am going to just keep my fingers crossed and see what becomes of all of this, it has been about 10 years now in the making, will keep posted
Do you know if there is a website i can go to file?
They arent paying what they owe. It’s a pot of 100million split amongst 20k drivers. Screwed again by swift
It just sounds like driving a truck is just not what it used to be and you can’t make a good living at it anymore. Maybe I’m wrong I have a truck signed on with Mercer transportation by the time you finish renting a trailer waiting for loads there is no money to be made
I drove for Swift Trans from May 1990 to Oct 2011, all but the 1st 6 yrs as an O/O. I kept a separate log of all trips I made that listed the Trip #, paid loaded and unloaded miles and the actual miles driven. Most of the time I was lucky if the paid miles matched from 1 city limit to the next.
Go to the Haas Bergman (spelling may be incorrect) website and checkout their lawsuits. Then do a check on their Swift lawsuit update. The lawyers will get $20,750,000 of the $100,000,000. No one will get less than $250 (drivers with the shortest employment time). The rest will be awarded an amount commensurate with their own employment time.
I’m darned curious in regards to what 21 years of catch up back pay might look like.
Also, with this Covid-19 virus in play, this looks like a good time to ask for a pay raise. Especially if you are hauling toilet paper. Sick humor.
I drove for swift now read all this glad I didn’t.