Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Costco Drops California Fleet Accused of Abusive Labor Practices

In the wake of a report in June by USA Today showcasing extreme examples of alleged labor abuse,Costco said it will no longer do business with Pacific 9 Transport, a fleet based in Southern California.

by Staff
September 1, 2017
Costco Drops California Fleet Accused of Abusive Labor Practices

Costco has dropped a California fleet accused labor abuses in the wake of a USA Today report on the trucking industry. Photo: Costco

2 min to read


Costco has dropped a California fleet accused labor abuses in the wake of a USA Today report on the trucking industry. Photo: Costco

USA Today raised eyebrows in June with an expose’ alleging labor abuses at trucking fleets operating at the Southern California ports. Now the newspaper is reporting that in the wake of that story, Costco will no longer do business with one of the fleets highlighted in the story.

The newspaper reported that some port drivers were working long hours and taking home very little – in some cases none – of their paychecks after their lease payments and other expenses were deducted. The report claimed that in some cases drivers were being forced to work as much as 20 hours in a day, far past the maximum allowed by law, drivers alleging that their supervisors threatened to take their jobs or assigning lower-paying routes as punishment if they did not.

Ad Loading...

Now Costco, one of the largest U.S. retailers, has announced it will no longer do business with Pacific 9 Transportation.

Pacific 9 told USA Today that it had stopped leasing trucks to drivers before Costco ended its relationship, and the company had launched reforms to improve pay.

In the wake of the June report, the Harbor Trucking Association, which represents fleets at the ports, told HDT the cases reported by USA Today were cherry-picked for their extremeness or were not completely explained. "It focuses on a very small subset of the industry, and what we forget to point out is the 90-plus percent of drivers who prefer to be independent contractors and have made that business model work."

Ad Loading...

Costco's action comes on the heels of additional fallout from the story, USA Today reports, including four senators, led by Senator Sherrod Brown (D-OH), sending letters to 16 U.S. retailers urging them to take a stand against “shameful” labor abuses.

In the wake of these actions, the paper reports, Hewlett-Packard also sent an auditor to investigate the company’s labor practices, while Walmart pledged in a letter responding to the senators that it would cancel contracts with any trucking company that did not provide “assurances” it was following fair labor practices.

In the letter, Walmart Executive Vice President Joy Jorgensen wrote that, “The stories profiled in that article are deeply concerning. Any motor carrier that fails to comply with law, such as those alleged in the article, would be in violation of our contract and would therefore be subject to cancellation.”

According to USA Today in the wake of its reporting, “a wave of pressure from retailers and manufacturers has hit port trucking operations across the industry, according to drivers who say their employers have been fielding calls from clients."

More Drivers

photo of older driver standing with arms crossed with truck in the background, with a photo illustrating equal opportunity law inset upper left.
Drivers•by Staff•September 28, 2026

EEOC Sues Texas Trucking Company Over Driver Age Limits

The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.

Read More →
Red Nussbaum Class 8 tractor pulling white and red trailer with aero fairings and skirts
Drivers•by Staff•September 23, 2026

Nussbaum, Roehl Announce Second Driver Pay Increase This Year

This year has seen a swath of major truck driver pay increases as freight capacity has tightened.

Read More →
Photo of smiling truck driver Harold Perry with arms crossed in front of Southeastern Freight Lines truck
Drivers•September 17, 2026

From One Generation to the Next: How Mentorship Builds Safer Truck Drivers

After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.

Read More →
Ad Loading...
Illustration with driver behind the wheel, an alert sign, and a laptop
Drivers•by Lauren Fletcher•September 9, 2026

Truck Drivers Need More Than Another Alert

Fleets have more visibility into truck health, safety events, and driver activity than ever. The next challenge is turning all that information into useful guidance for the person who has to decide what to do next.

Read More →
Two men in jackets with Homeland Security indicated on the back, standing in a parking lot looking toward a building with trucks in front of it
Drivers•by Deborah Lockridge•September 1, 2026

FMCSA Removes 110 Truck Driver Training Schools from Certified ELDT List

Federal regulators also are targeting more than 160 additional training providers and launching a nationwide audit of third-party CDL skills testers as part of a broader crackdown on trucking fraud.

Read More →
Illustration of tired truck driver, electronic logging device, and traffic congestion

Hours of Service Pilot Programs: FMCSA Readies for 2027 Rollout

Two pilot programs could eventually reshape hours-of-service rules, giving truck drivers options to pause their 14-hour clock or use longer split sleeper rest periods.

Read More →
Ad Loading...
Illustration with safety cones in background, Roadcheck logo, cargo tiedowns, and officer checking driver logs
Safety & Compliance•by Deborah Lockridge•August 26, 2026

Medical Cards, English Proficiency Reshape Roadcheck Violations

Medical-card violations jumped to the top of the driver out-of-service list during CVSA’s 2026 International Roadcheck, while English-language proficiency violations appeared among the leading violations for the first time.

Read More →
Illustration of data privacy, big brother concept, and truck driver behind the wheel
Safety & Compliance•by Deborah Lockridge•August 17, 2026

Driver Trust Can Make or Break the Success of Fleet Safety Technology

New Teletrac Navman research suggests that onboarding, transparency about driver data, and positive feedback can play a significant role in how commercial drivers respond to safety and coaching technology.

Read More →
Illustration incorporating a gavel, the back of a driver training trailer, and art showing a blue female shape standing out in a row of male shapes.
Drivers•by Staff•August 11, 2026

EEOC Sues KLLM Over Alleged Sex Discrimination in Driver Training

KLLM is facing a federal sex-discrimination lawsuit over policies the EEOC alleges put female truck driver trainees at a disadvantage.

Read More →
Ad Loading...
Safety & Compliance•by Deborah Lockridge•August 10, 2026

FMCSA Moves to Codify English Language Requirements for Commercial Drivers

By changing regulations on English-language proficiency requirements for commercial drivers, rather than relying on a guidance memo, the FMCSA said future administrations won't be able to walk back the Trump administration's stricter enforcement with just a memo.

Read More →