T-Force agreed to pay $15.5 million as part of a lawsuit settlement to resolve claims it misclassified drivers as independent contractors instead of employees.
The settlement will benefit California-based individuals who signed an independent contract and/or owner-operator agreement with the following companies: Dynamex Operations West Inc., T-Force Final Mile West LLC, TForce Logistics West LLC, BeavEx Inc., JNJW Enterprises Inc., Velocity Express Leasing Inc. or Velocity Express LLC before Dec. 31, 2019. The settlement also benefits those who signed an owner-operator agreement with Subcontracting Concepts CT LLC after Dec. 31, 2019.
Drivers must have personally performed at least one delivery in California through Dynamex Operations West, T-Force Final Mile West or T-Force Logistics West between Feb. 15, 2015, and Dec. 31, 2022, and must not have had more than one indirect driver working or associated with them between Feb. 15, 2015, and Nov. 15, 2022.
The driver misclassification class action alleges that T-Force violated California law by misclassifying truck drivers as independent contractors rather than employees. This alleged misclassification resulted in drivers not being paid minimum wage, overtime, rest periods, expense reimbursement and other benefits, the class action lawsuit contends.
T-Force is a shipping company that offers delivery solutions across the United States and Canada. The company has several locations in California. T-Force hasn’t admitted any wrongdoing but agreed to a $15.5 million class action lawsuit settlement to resolve these allegations. Under the terms of the T-Force settlement, class members can receive a cash payment based on the number of workweeks they worked during the class period.
Each class member will receive a proportional share of the net settlement fund based on this number. Exact payments will vary depending on the number of participating class members and the net settlement fund after various deductions. Class members who received a mailed notice may have been sent a payment estimate.
Twenty percent of each settlement payment will be considered wages for tax purposes, resulting in a W-2 form. Another 20% will be considered interest, resulting in a 1099-INT form. Forty percent of each payment will be considered expense reimbursement, and the remaining 20% will be considered penalties, resulting in a 1099-MISC form. Class members may wish to speak with an accountant or other professional about the tax consequences of these payments.
The deadline for exclusion is Feb. 18, 2023. The deadline for objection is March 20, 2023. The final approval hearing for the settlement is scheduled for April 3, 2023. No claim form is required to receive settlement benefits. Class members who do not exclude themselves will automatically receive a settlement payment.
California-based individuals who signed an independent contractor and/or owner-operator agreement with Dynamex Operations West Inc., T-Force Final Mile West LLC, TForce Logistics West LLC, BeavEx Inc., JNJW Enterprises Inc., Velocity Express Leasing Inc. or Velocity Express LLC before Dec. 31, 2019, or who signed an owner-operator agreement with Subcontracting Concepts CT LLC after Dec. 31, 2019.
To qualify, drivers must have personally performed at least one delivery in California through Dynamex Operations West, T-Force Final Mile West or T-Force Logistics West between Feb. 15, 2015, and Dec. 31, 2022, and must not have had more than one indirect driver working or associated with them between Feb. 15, 2015, and Nov. 15, 2022.