Long Beach-based logistics company Cal Cartage Co. was ordered to pay $3.5 million to more than 1,400 of its workers for violating labor laws.
The order came from the U.S. Department of Labor and Wage Hour division which said the company owed its warehouse workers back wages as well as health and welfare benefits.
Cal Cartage is a subsidiary of Cherry Hill, N.J.-based NFI Industries Inc. and has been embroiled in a number of litigation cases with its workers and the city of L.A. as well as investigations by state and federal labor commissioners.
Earlier this year, City Attorney Mike Feuer announced his office had filed lawsuits against Cal Cartage and two other subsidiaries of NFI Industries, CMI and K&R Transportation, for allegedly misclassifying port truck drivers as independent contractors instead of employees.
Over the last two years the California Labor Commissioner has issued 12 decisions siding with Cal Cartage workers alleging misclassification and has ordered the company to pay $1.4 million. Cal Cartage appealed the Labor Commissioner’s decisions but settled 11 of the cases, according to court documents.
See related story "City Attorney Files Lawsuits Against Local Trucking Companies"
Manufacturing, retail and trade reporter Shwanika Narayan can be reached at firstname.lastname@example.org or 323-556-8351. Follow her on Twitter @shwanika.