The Los Angeles Superior Court has ruled against Pacifica Trucks, Wilmington, Calif., which was found to have misclassified its drivers as independent contractors.

In 2008, Attorney General Edmund G. Brown Jr. filed suit against the trucking company, alleging it misclassified drivers, failing to pay state employment-related taxes, contribute to Social Security and Medicare, and provide W-2 forms to its employees.

"We're sending a clear message that if you cheat your workers, we're coming after you," Brown said. "Pacifica Trucks claimed that its workers were independent contractors in order to avoid paying the Social Security, Medicare and workers' compensation benefits to which they are entitled under state law." 



In the lawsuit, Brown argued that Pacifica Trucks had exclusive authority over its drivers and provided all of the trucks, equipment, gas, repairs, and other business-related expenses used by employees. According to Brown, the drivers should have been classified as employees with legally mandated protections and benefits.

Brown also argued that the company had an unfair advantage over its competitors through the cost savings achieved by misclassifying its workers. 



Under the judgment, Pacifica Trucks must permanently refrain from misclassifying truck drivers as independent contractors and pay a penalty.