Hub Converting California O-Os to Company Drivers Following Lawsuits
UPDATED -- Due to litigation and upcoming settlements, one trucking operation is abandoning its owner-operator business model in California.
by Staff
September 9, 2014
Photo: Evan Lockridge
2 min to read
Photo: Evan Lockridge
UPDATED -- Due to litigation and upcoming settlements, one trucking operation is abandoning its owner-operator business model in California.
Hub Group Trucking, the drayage operation of the logistics provider The Hub Group, and formerly known as Comtrak Logistics, says it will convert these 350 truckers to company drivers in the next two weeks, according to a statement sent to customers and obtained by the Journal of Commerce for a story published Tuesday morning.
Ad Loading...
“It appears that the legal climate in California is becoming unfavorable to the common trucking industry practice of using independent truck drivers,” said Dan Burke, president of Hub Group Trucking, in the statement.
Another, and far more likely reason for the change in driver classification is due lawsuits, including one that sought class action certification on behalf of present and former California-based truck drivers for Hub Group Trucking, who were classified as independent contractors from January 2009 to the present.
The complaint alleges Hub Group Trucking misclassified these truck drivers as independent contractors rather than employees. A second complaint alleging substantially similar claims was filed in July, but the company says it has not been served with a copy of that complaint.
Both lawsuits were disclosed by the Hub Group in a disclosure filed later on Tuesday with the Securities and Exchange Commission.
“Because lawsuits are expensive, time-consuming and could interrupt our business operations, we have decided to make settlement offers to individual drivers with respect to the claims alleged in the lawsuits, without admitting liability,” Hub Group said in the filings. “The company estimates that the total settlement amount, if all drivers accept the offers, is approximately $9.5 million. To date, a substantial number of the independent contractors have decided to accept the settlement offer.”
Ad Loading...
This change in status for Hub’s California based drivers also comes as there are an increasing number of lawsuits against other companies in the state and elsewhere, claiming some truckers are wrongly classified as independent contractors/owner operators by trucking fleets and should instead be regarded as company drivers.
Hub Group Trucking has reportedly already met with drivers about the change in status, while Burke defended the company’s classification of its drivers as independent contractors, adding, “To avoid potential issues with the usage of owner/operators as the California legal environment changes and because we need to manage our business for the long-term, we decided to change our model and build around employee drivers.”
Listen as transportation attorney and TruckSafe Consulting President Brandon Wiseman joins the HDT Talks Trucking podcast to unpack the “regulatory turbulence” of last year and what it means for trucking fleets in 2026.
Safety, uptime, and insurance costs directly impact profitability. This eBook looks at how fleet software is evolving to deliver real ROI through proactive maintenance, AI-powered video telematics, and real-time driver coaching. Learn how fleets are reducing crashes, defending claims, and using integrated data to make smarter operational decisions.
Fleet software is getting more sophisticated and effective than ever, tying big data models together to transform maintenance, safety, and the value of your existing tech stack. Fleet technology upgrades are undoubtedly an investment, but updated technology can offer a much higher return. Read how upgrading your fleet technology can increase the return on your investment.
The Federal Highway Administration is asking motor carriers and truck drivers to give input on where and when drivers have difficulty finding truck parking, and on how drivers prefer to get information on available parking.
The Federal Motor Carrier Safety Administration continues a crackdown on an increasing number of states it says have been issuing non-domiciled CDLs improperly.
The Department of Transportation and the Federal Motor Carrier Safety Administration took several actions in 2025 to tighten enforcement of regulations for commercial drivers. Will those affect trucking capacity in 2026?
Lisa Kelly talks to HDT about the return of the show Ice Road Truckers, what really happens on the ice roads, how reality TV shapes drivers’ stories, and the career she’s built beyond the show.