Truck drivers win $52M whistleblower retaliation verdict against Sysco

Sysco said it plans to challenge the verdict. In a statement emailed to FreightWaves, the company said, “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.”

Allegations of unsafe practices

According to court documents, the employees — many of whom had worked at Sysco for years or decades at a location in Riverside, California — raised concerns related to yard safety, excessive working hours, falsified time records, food safety violations and retaliation for contacting regulators, including Cal/OSHA and the Labor Commission.

Houston-based Sysco (NYSE: SYY) is a multinational corporation that sells, markets and distributes food products, foodservice supplies, and equipment to restaurants, healthcare facilities and stadiums.

Sysco 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. 

The plaintiffs who worked at the Sysco Riverside facility said they were pressured to move trucks and trailers quickly through crowded yards, sometimes at unsafe speeds, and to maintain tight schedules that prioritized efficiency over safety. They also said they were told to load perishable food into trailers that were not properly refrigerated.

Gallagher said the misconduct described at trial spanned several years.

“It was, at least in our case, from 2016 until 2020 — four years,” she said.

Retaliation claims central to verdict

At the heart of the lawsuit were allegations that Sysco retaliated against workers who refused to participate in or reported those practices. The employees said retaliation included reduced hours, harassment, surveillance, discipline, termination and constructive discharge.

Gallagher said one of the most striking facts for jurors was how the company handled a supervisor accused of leading the retaliation.

“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.

What the drivers wanted

Gallagher said the plaintiffs were motivated by more than personal compensation.

“There were two important factors,” she said. “It was getting them compensation for what they went through, and the second factor was stopping this behavior at Sysco. They didn’t want other truck drivers to have to go through what they went through.”

The jury found that Sysco violated California Labor Code Section 1102.5, the state’s whistleblower protection statute, which prohibits retaliation against employees who report or oppose illegal activity — even when complaints are made internally.

“In California, you don’t have to go to a government agency to be protected,” Gallagher said. “If you complain to your employer and they don’t take steps or they retaliate against you, then that’s illegal.”

Message for drivers and employers

Gallagher said she hopes the verdict sends a clear warning to employers across transportation and logistics.

“I know it’s scary to stand up and speak out,” she said. “But it’s the only way it’s going to stop.”