Go to Wolters Kluwer VitalLaw.comGo to Wolters Kluwer VitalLaw.com
VitalLaw®
  • Find answers to your questions
  • Log in to access your subscriptions
In depth. On point.
In depth. On point.
  • Home
  • Legal Directory
  • Home
  • Legal Directory
In depth. On point.
  • Articles
    • Articles
  • Law Firms
    • Law Firms
  • Organizations
    • Organizations
    • REMEDIES, DAMAGES—5th Cir.: NLRB lacks statutory authority to award full compensatory damages
    • CALIFORNIA AGENCY NEWS—Costco Wholesale Corp. and logistics companies cited $868K for employee misclassification, wage theft
    • DISCRIMINATION—D. Mass.: TRO against dismantlement of Justice Department’s CRS, established under Johnson administration, declined
    • DISCRIMINATION—DISABILITY—6th Cir.: Nonprofit case manager who requested remote work accommodation can’t revive ADA claims
    • EXPERT INSIGHTS—California employers, heads up: Senate Bill 513 just changed the rules on personnel files
    • EXPERT INSIGHTS—Managing director personally on the hook for $2 million in wage violations: 6 steps to avoid liability
    • INDIVIDUAL RIGHTS—5th Cir.: Professor, critic of university’s DEI policies, cannot revive claims
    • LITIGATION NEWS, TRENDS—IBEW becomes latest union to sue over executive orders relating to collective bargaining
    • LITIGATION NEWS, TRENDS—Palantir sues former engineers for alleged theft of AI platform trade secrets
    • REMEDIES, DAMAGES—N.D. Ill.: In challenge to Trump’s EO on DEI, broad preliminary relief was consistent with Supreme Court’s CASA decision
    • STATE-LAW CLAIMS—W.D. Pa.: Discharged doctor’s claims against employer hospitals move forward in part
    • VITAL BRIEFING—Tariff truce to rage on after Xi, Trump meeting
  • Articles
    • Articles
  • Law Firms
    • Law Firms
  • Organizations
    • Organizations

    Labor & Employment Law Daily Wrap Up, CALIFORNIA AGENCY NEWS—Costco Wholesale Corp. and logistics companies cited $868K for employee misclassification, wage theft, (Nov 3, 2025)

    Organizations Mentioned:Costco Wholesale Corp. NEW | Costco Wholesale Corporation | Mega Nice Trucking LLC | Ryder Last Mile Inc.

    By Patricia K. Ruiz, J.D.

    The LCO cited the three companies jointly due to their direct and indirect control over the affected delivery drivers.

    The California Labor Commissioner’s Office (LCO) cited Costco Wholesale Corporation, Ryder Last Mile Inc., and Mega Nice Truc ...

    By Patricia K. Ruiz, J.D.

    The LCO cited the three companies jointly due to their direct and indirect control over the affected delivery drivers.

    The California Labor Commissioner’s Office (LCO) cited Costco Wholesale Corporation, Ryder Last Mile Inc., and Mega Nice Trucking LLC after it discovered systemic misclassification of workers and other labor law violations. The LCO jointly cited the employers a total of $868,128, of which $662,978 is payable to the affected workers.

    Wage theft. Mega Nice Trucking, a subcontractor for third-party logistics company Ryder Last Mile, contracted with drivers to deliver large items from big box retailers in the San Diego region. In an investigation that began July 2024, the LCO’s Bureau of Field Enforcement (BOFE) found that Mega Nice Trucking systematically misclassified its drivers as independent contractors, depriving them of workplace protections including minimum wage, overtime pay, and legally mandated meal and rest breaks. The subcontractor reclassified drivers as employees in 2023 but continued to pay only flat daily rates and deprive drivers of proper compensation for overtime hours or missed meal breaks. Investigators determined the subcontractor falsified payroll records, suggesting it deliberately tried to conceal its ongoing labor law violations. Mega Nice Trucking had previously been penalized by the California Employment Development Department for similar violations.

    Joint employer relationship. LCO further determined Costco and Ryder Last Mile exercised direct and indirect control over the delivery drivers, including scheduling deliveries, mandating uniforms, enforcing specific protocols, and closely monitoring driver performance. Because of these actions, the two companies had a joint employer relationship with Mega Nice Trucking, making them equally liable for the misclassification and resulting wage theft.

    Companies: Costco Wholesale Corporation; Ryder Last Mile Inc.; Mega Nice Trucking LLC

    News: AgencyNews LaborNews Labor EmployeeStatus IndividualRights UnfairLaborPractices RemediesDamages WageHour MinimumWage Overtime WorkingTime

    © 2026 CCH Incorporated and its affiliates and licensors. All rights reserved.

    • Manage Cookie Preferences
    • Privacy Statement
    • Terms of Use