Five truck drivers who worked for Phoenix-based Swift Transportation Co. have won a seven year legal battle against the transportation giant.
The drivers, who drove exclusively for Swift and leased their truck’s through Swift’s lease-purchase program, claimed they were misclassified as independent contractors instead of employees. According to a report by The Wall Street Journal, the plaintiffs were seeking “compensation paid to employees but withheld from ‘owner-operators,’ or drivers who lease trucks from a Swift subsidiary.”
Swift Transportation argued that lease-purchase drivers were independent contractors, but last week, U.S. District Judge John Sedwick ruled that the drivers were essentially operating as employees.
The misclassification allowed the company to shift certain risks and expenses to the drivers.
Compensation for the five drivers will be determined at a later date.
In a written statement, Judge Sedwick said the drivers “as a practical matter, had to drive for Swift,” and that Swift “had full control of the terms of the relationship.”
Although a small number of drivers were represented in the case, the ruling can potentially open the floodgates for similar cases against Swift and other large carriers.
In September 2016, Swift had 17,480 active drivers, 4,391 of which were independent owner-operators.
The company has not yet stated if they plan to appeal the ruling.