Transport Company Settles 10-Year IC Misclassification Class Action In Tennessee by Drivers for $4.75 Million

A Tennessee federal district court has granted final approval to the settlement of an IC misclassification class action by transport drivers against intermodal transportation companies, ending a lawsuit that commenced ten years earlier. The drivers alleged that Comtrak Logistics, Inc. and the HUB Group misclassified them as independent contractors in violation of California law and, as a consequence, the companies owed the drivers compensation for unpaid wages, missed meal and rest breaks, unreimbursed business expenses, and other statutory penalties and damages. 

The settlement agreement defines two subclasses: one consisting of all class members who did not sign an individual settlement agreement (51 class members); and the other consisting of all class members who previously signed an individual settlement agreement (632 class members). $4.75 million will be awarded to class members: those in the first subclass will receive an average payment of $55,000 with a range of $3,000 to $237,000; those in the second subclass will receive an average of $1,100 with a range of $236 to $3,500. The members of the second subclass had already received payments totaling $9 million, with each member previously receiving an average payment of $14,000. Robles v. Comtrak Logistics, Inc., No. 2:15-cv-02228 (W.D. Tenn. Dec. 14, 2022).