Los Angeles, California — A federal court has barred Cargomatic Inc., a transportation provider in Long Beach, from retaliating against drivers who reported labor law violations and sought unpaid wages.
The U.S. Department of Labor secured the ruling after drivers delivering freight for Ceva Freight LLC, a subsidiary of Ceva Logistics, filed claims alleging federal and state labor law violations.
The court’s order prohibits Cargomatic from intimidating drivers or shifting liability for labor law violations onto them.
The company had threatened countersuits for over $150,000 in attorney’s fees and accused the drivers of breaching service agreements containing unlawful indemnity and arbitration clauses. These provisions aimed to deter workers from exercising their legal rights to recover unpaid wages.
Marc Pilotin, the Department’s Regional Solicitor, stated that employers are not allowed to shift liability for wage violations onto workers through hidden contract clauses. He emphasized that such actions are illegal and will not be tolerated.
The case is part of broader efforts by the Department of Labor to combat coercive practices, following similar actions against employers in New York and Vermont. The court’s decision reinforces protections for workers under federal and California labor laws.