Penske Logistics has finally agreed to pay 344 current and former drivers $750,000 to settle an 8-year-old class action lawsuit that challenged the company’s “alleged denial of state-required breaks for its drivers.” The settlement agreement was filed back on February 6, and will award the three lead plaintiffs $15,000 each while the “rest of the drivers will receive a share of the remaining settlement.” Attorney fees and court costs for the plaintiffs will also be covered by the settlement.
Penske Logistics has finally agreed to pay 344 current and former drivers $750,000 to settle an 8-year-old class action lawsuit that challenged the company’s “alleged denial of state-required breaks for its drivers.” The settlement agreement was filed back on February 6, and will award the three lead plaintiffs $15,000 each while the “rest of the drivers will receive a share of the remaining settlement.” Attorney fees and court costs for the plaintiffs will also be covered by the settlement.
Despite agreeing to settle, the company released a statement claiming they aren’t admitting to any wrongdoing, and they merely wanted an end to “protracted litigation.” According to their statement:
“Penske is pleased to have reached an agreement with the plaintiffs’ counsel to settle this dispute. The company did not admit any wrongdoing and believes it would have prevailed based on the merits of the claims, but we look forward to the court approving the settlement and putting an end to the lawsuit.”
The company’s statement was released after the 9th Circuit Court of Appeals issued their court decision back in July of 2014, ruling that Penske “must allow drivers paid meal and rest breaks if state law requires.” In the aftermath of the court decision, other carriers and trucking trade groups grew concerned that the decision could “prompt a wave of similar litigation by drivers seeking back pay for meal and rest breaks, especially in California, where the Penske lawsuit began.” However, according to reports, the court ruling was “centered specifically on California law and its requirement that employers give employees a paid 30-minute meal break every five hours on the clock and paid 10-minute rest breaks for every four hours of work.” The ruling was in response to complaints from plaintiffs who argued that Penske “created an environment that discourages employees from taking their meal and rest breaks.”
During the course of the lawsuit, Penske cited the Federal Aviation Administration Authorization Act of 1994, also known as F4A, that “preempts state-level laws on interstate drivers’ time and pay.” The bill effectively “establishes federal law supersedes state laws that affect carriers’ prices, routes or services.” Because of this, the company claimed that F4A protected them, as well as other carriers, from having to comply with “California laws and any similar laws in other states.”
Unfortunately for Penske, the 9th Circuit bench ruled against them “and the F4A preemption.” After appealing to the Supreme Court back in 2015 and being denied a hearing, Penske was left with the 9th Circuit Court’s decision. Bad news for Penske, but good news for the 344 current and former drivers who will receive a chunk of the settlement.
Sources:
Penske To Pay Drivers $750k To Settle Prominent Lawsuit Over California-Required Breaks
Penske Logistics to Settle California Truckers’ Lawsuit for $750,000
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