Schneider Logistics Settles Lawsuit for $21 Million

The logistics operation of trucking industry giant Schneider has agreed to pay $21 million to settle a class action lawsuit filed that includes as many 1,800 employees over alleged wage and hour violations, according to published reports.

The case was originally filed in 2011 by six workers at a Southern California warehouse complex operated by Schneider Logistics where they loaded and unloaded freight exclusively for Walmart stores.

According to the law firm representing the plaintiffs, Taber & Voorhees, Pasadena, Calif., the workers claimed over a period of more than a decade they were not paid minimum wage and overtime or time they were required to be physically present at the warehouses while waiting for work to be assigned to them.

It also alleged they were illegally paid using “piece rate” plan that did not compensate them fully for all of the work they performed. According to a story in the Los Angeles Times one worker said he earned no more than $100 to $150 per week at times, far below the minimum wage.

Charges also included not getting meal and rest breaks, as required by law, and retaliation against employees who questioned their pay or complained about what they thought were illegal work practices.

According to published reports Schneider will pay the entire settlement without admitting to any wrongdoing or any contribution from Walmart, who was later added to the lawsuit.

The settlement faces approval by a federal judge, which is expected to be granted later this year.

This follows a settlement that was approved earlier this month in a separate case in which Schneider Logistics agreed late last year to pay $4.7 million in class action over similar allegations and at the same warehouse complex.

More details: Workers reach $21-million settlement against Wal-Mart, warehouses