After more than a decade of legal disputes, Werner Enterprises has agreed to an $18 million settlement with roughly 100,000 of its drivers. This long-standing class-action lawsuit, initiated in 2014, addresses allegations of wage and hour violations, including claims of unpaid minimum wages and inadequate meal and rest periods. The proposed settlement, which still requires final approval from the U.S. District Court for Nebraska, represents a significant development in a case that has seen extensive legal maneuvering and a complex interplay of federal and state labor laws.
The legal action originated in 2014 within California's state court system before being transferred to federal jurisdiction. The lawsuit detailed numerous alleged infractions against Werner Enterprises, such as failing to compensate drivers for all work time, including periods spent in sleeper berths, waiting for loads, and performing pre-trip inspections. Additionally, the plaintiffs claimed the company did not provide proper meal and rest breaks or the equivalent wages in their absence, made unlawful deductions from earnings, issued improper pay statements, and neglected to maintain accurate time and pay records.
The terms of the agreement establish an $18 million fund designated for two distinct groups of drivers. The first group, known as the California Class, includes drivers who resided in California and transported at least one load for Werner within the state between June 4, 2010, and July 14, 2023. The second group, the Nebraska Class, encompasses drivers who hauled at least one load anywhere else in the country during the same timeframe. This comprehensive approach aims to resolve claims that presented novel legal challenges at the intersection of federal hours-of-service regulations and varying state wage and hour statutes, issues that courts nationwide have only recently begun to address.
The settlement outlines a tiered payout structure. Members of the Nebraska Settlement will receive a base payment of $20 if they are contacted and do not opt out, while California Settlement members will receive $40. Beyond these base amounts, the remaining funds will be distributed proportionally based on the duration each driver was employed by Werner within the 13-year period covered by the settlement. This method ensures that drivers with longer tenures, who were subject to the challenged compensation practices for extended periods, receive a larger share of the compensation. The seven initial plaintiffs in the case may also be eligible for additional payments of up to $15,000 each, pending final court resolution. A third-party administrator, Atticus Administration, is tasked with contacting eligible class members in the coming month to facilitate the payout process.
The settlement was reached in October, mere days before the case was scheduled to proceed to trial. Both parties acknowledged that the path to this resolution was arduous, with significant legal victories and challenges experienced by both sides throughout the litigation. The exhaustive pre-trial preparations ultimately informed the negotiation process, leading to an agreement that both the plaintiffs and Werner Enterprises view as a fair resolution for claims that carried considerable risk for all involved.
