Costco, Ryder Last Mile Inc. and Mega Nice Trucking LLC $868,128 citation has been issued by the California Labor Commissioner’s Office for worker misclassifying and labor law violations affecting 58 delivery drivers.
The LCO reports that Ryder Last Mile Inc. hired drivers to deliver large items from the big box retail stores in San Diego with Mega Nice Trucking acting as its service provider.
According to the LCO’s, Mega Nice Trucking drivers were deprived of standard workplace protections such as mandatory meal and rest breaks and minimum wage because they were classified as independent contractors.
Additionally, workers were subjected to flat daily rates with no pay for missed meal breaks or overtime hours, even after being reclassified as employees in 2023. Falsified payroll records uncovered by investigators also indicate deliberate efforts to conceal the violations, according to the LCO.
In July 2024, Mega Nice Trucking admitted to misclassifying its drivers after two employees filed complaints regarding wage theft and misclassification. The California Employment Development Department penalized the company for similar violations in the past, according to the LCO.
For the $868,128 citation, $662,978 was payable to the workers affected by the violations. The three companies have undergone appeals for the citations they received.
Costco, Ryder Last Mile, and Mega Nice Trucking were jointly cited by the LCO a total of $868,128, of which $662,978 is payable to the affected workers.
All employers have appealed the citations.
Topics California Personal Auto
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