California Publishes First Port Drayage Provider Delinquency List

As a follow up to California Senate Bill 1402, which became enforceable as of January 1, 2019, the California Division of Labor Standards and Enforcement has published the first list of port drayage providers with outstanding, unsatisfied court judgments, tax assessments or tax liens.

Use of carriers on this list by customers can result in the customer being “held jointly and severally liable with the motor carrier for the full amount of all unpaid wages, unreimbursed expenses, damages, and penalties, including applicable interest, which are found owed by the motor carrier for that workweek. The customer shall be jointly and severally liable from the time the driver is dispatched to begin work on behalf of the customer until all tasks are completed incidental to that work, including the return of an unladen chassis or intermodal container to its point of origin, and the driver is ready to be dispatched to haul freight on behalf of another customer.”

According to this addition to the Labor Code, a customer is classified as “a business entity who engages or uses a port drayage motor carrier to perform port drayage services on the customer’s behalf, whether the customer directly engages or uses a port drayage motor carrier or indirectly engages or uses a port drayage motor carrier through the use of an agent, including, but not limited to, a freight forwarder, motor transportation broker, ocean carrier, or other motor carrier.”

The list can be found here.

Customers are encouraged to evaluate this list accordingly and take action as needed.

Shapiro will continue to monitor the situation and will provide updates as they become available.