A group of truck drivers have accused one of the country’s leading trucking and intermodal logistics companies of failing to return escrow funds the company had collected weekly from the truckers, as required by federal transportation regulations.
On March 18, attorney Michael Drew, of the Neighborhood Legal firm, of Chicago, filed a class action lawsuit in Chicago federal court against Universal Intermodal Services, a subsidiary of Universal Logistics Holdings.
The lawsuit was filed on behalf of named plaintiffs Joel Pulido and Jorge Zepeda, truck drivers who at one time worked for Universal out of the company’s trucking terminal in southwest suburban Harvey.
The plaintiffs seek to expand the lawsuit to include many other truck driver owner-operators who worked for Universal Intermodal.
According to the lawsuit, Universal deducts $15 per week from the pay owed to drivers to hold in escrow, ostensibly to cover the cost of operating a so-called Electronic Log Device the drivers are required by federal regulations to keep in their truck while in operation. Those ELDs require a monthly subscription or maintenance fee, paid to a third-party ELD service provider.
The plaintiffs assert they were required by Universal to use a specific ELD in their vehicles.
According to the complaint, Pulido’s escrow account amounted to about $850 when he left Universal’s employment in August 2020. Zepeda’s account held about $1,500 when he quit working for Universal in June 2020.
Federal regulations allow for such escrow deductions to cover incidental costs, and such accounts are common.
However, the complaints assert Universal has violated federal rules which require trucking companies to hand the escrow funds back to the drivers within 45 days from the end of their employment.
And the complaint accuses Universal of refusing the drivers’ requests for the money.
The lawsuit accuses Universal of engaging in a racketeering conspiracy to “steal Plaintiffs’ and other owner-operator’s money by requiring and accepting escrow money with no intention of repaying that money.”
The lawsuit includes counts of embezzlement, conversion and violations of federal Truth-in-Leasing regulations, issued under the federal Motor Carrier Act, plus other counts.
The plaintiffs are seeking court orders requiring Universal to repay the funds in triple, as well as actual damages, emotional distress damages, and unspecified punitive damages, plus attorney fees.