A California jury recently awarded more than $50 million to a group of truck drivers and yard workers who said that they were retaliated against after expressing safety, wage, and regulatory issues to their employer.
The company was found liable for whistleblower retaliation and wrongful termination. A Santa Monica Superior Court jury awarded a verdict of $31 million and added $21 million in punitive damages.
The action was filed in Los Angeles County Superior Court against Sysco Riverside, Inc. and Sysco Corp., where a number of employees accused the company’s managers of cultivating an environment of intimidation toward employees who reported unsafe and illegal practices.
Sysco, one of the nation’s largest food-distribution companies, said it will appeal the verdict. The company said in a statement, “Safety and security are top priorities at Sysco Riverside, Inc., as well as Sysco’s other operating sites.” Sysco added that while it “respect[s] the jury’s time and service,” it “strongly disagree[s] with its findings” and is reviewing the award to determine next steps, “including but not limited to anticipated post-verdict proceedings and an appeal.
Claims of Unsafe Practices
The plaintiffs, many of whom had worked at the company for many years in Riverside, California, asserted their concerns about yard safety, excessive working hours, bogus time records, food safety violations, and retaliation for contacting regulators, including Cal/OSHA and the state labor commission.
The five former employees were drivers and spotters who claimed that Sysco targeted them after they reported the safety and legal violations. The plaintiffs who worked at the Riverside facility said they were pressured to move trucks and trailers quickly through crowded yards, sometimes at unsafe speeds, and to maintain rigid schedules that stressed efficiency over safety. They also said they were directed to load perishable food into trailers that weren’t properly refrigerated. Truck temperatures were up to 70 degrees rather than the required 40. They also were required to complete pre-trip inspections in 20 minutes. This, the plaintiffs said, was impossible and forced them to use "cheat sheets" to bypass actual safety checks.
The misconduct described at trial was said to have happened over several years.
Retaliation Claims
The core of this discrimination action was the allegation that Sysco retaliated against workers who were unwilling to participate in or reported the described practices. The plaintiffs said Sysco’s retaliation included surveillance, less hours, harassment, discipline, termination, and constructive discharge.
The plaintiff’s attorney remarked that Sysco’s treatment of a supervisor accused of leading the retaliation was significant. “After all these people complained, it continued to go on, and they promoted him to a director — and he’s still the warehouse director there,” she said.
The jury found that Sysco violated California Labor Code § 1102.5, the state’s whistleblower protection statute. This law prohibits retaliation against employees who report or oppose illegal activity — even when complaints are made internally. Subsection (b) provides:
An employer, or any person acting on behalf of the employer, shall not retaliate against an employee for disclosing information, or because the employer believes that the employee disclosed or may disclose information, to a government or law enforcement agency, to a person with authority over the employee or another employee who has the authority to investigate, discover, or correct the violation or noncompliance, or for providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation, regardless of whether disclosing the information is part of the employee’s job duties.
In California, an employee doesn’t have to report an employer to a government agency in order to be protected. It’s against the law in California if an employee complains to his or her employer, and they fail to take action or they retaliate.
Houston-based Sysco is a multinational corporation that sells, markets and distributes food products, foodservice supplies, and equipment to restaurants, healthcare facilities and stadiums. The company directly operates 1,472 power units and employs 1,719 drivers, according to the Federal Motor Carrier Safety Administration. The company has 340 distribution centers in 10 countries.
Takeaway
Employees may bring legal action if they complain to their employer, and they don’t correct the behavior, or they retaliate against those who raise the issues. Therefore, employers should take such complaints seriously and ensure that they engage in lawful employment practices.