A California jury has awarded approximately $52 million to a group of truck drivers and yard workers who alleged they were retaliated against after raising safety, wage and regulatory concerns at Sysco, one of the nation’s largest food distributors.
The verdict, delivered in Los Angeles County Superior Court, stems from a lawsuit against Sysco Riverside Inc. and parent company Sysco Corp. Plaintiffs accused company leadership at the Riverside, California, facility of fostering a culture of intimidation toward employees who reported unsafe and unlawful practices.
Maryann Gallagher, lead attorney for the plaintiffs, said the size of the award reflected how jurors evaluated the evidence presented at trial.
“There was overwhelming evidence,” Gallagher told FreightWaves. “The jury saw repeated violations of the law, complaints from employees, and a failure by the company to correct those issues.”
Sysco said it intends to challenge the verdict. In a statement emailed to FreightWaves, the company said safety and security are top priorities across its operations.
“While we respect the jury’s time and service, we strongly disagree with its findings,” Sysco said, adding that it is reviewing the verdict and considering post-trial motions and an appeal.
Allegations of unsafe practices
According to court filings, the employees — many of whom had worked at the Riverside facility for years or decades — raised concerns involving yard safety, excessive working hours, falsified time records, food safety violations and retaliation for contacting regulators, including Cal/OSHA and the California Labor Commission.
Houston-based Sysco (NYSE: SYY) is a multinational foodservice distributor serving restaurants, healthcare facilities and institutional customers. The company operates 1,472 power units and employs 1,719 drivers, according to Federal Motor Carrier Safety Administration data, with 340 distribution centers across 10 countries.
Plaintiffs testified that they were pressured to move trucks and trailers rapidly through crowded yards, sometimes at unsafe speeds, while maintaining schedules that prioritized efficiency over safety. They also alleged they were instructed to load perishable food into trailers that were not properly refrigerated.
Gallagher said the conduct described at trial spanned multiple years.
“In this case, it went from 2016 through 2020,” she said.
Retaliation at the center of the case
Central to the jury’s finding were allegations that Sysco retaliated against employees who refused to participate in or who reported unsafe and illegal practices. Workers said retaliation took the form of reduced hours, harassment, surveillance, disciplinary actions, termination and constructive discharge.
Gallagher said jurors were particularly struck by how the company handled a supervisor accused of orchestrating the retaliation.
“Despite repeated complaints, the conduct continued,” she said. “He was promoted to director and remains the warehouse director today.”
More than compensation
Gallagher said the plaintiffs’ motivation extended beyond financial recovery.
“They wanted compensation for what they endured, but just as important, they wanted the behavior to stop,” she said. “They didn’t want other drivers to go through the same thing.”
The jury found that Sysco violated California Labor Code Section 1102.5, the state’s whistleblower protection law, which prohibits retaliation against employees who report or oppose illegal conduct — including complaints made internally.
“In California, internal complaints are protected,” Gallagher said. “If an employer retaliates instead of addressing the issue, that’s a violation of the law.”
A broader message
Gallagher said she hopes the verdict sends a message across the transportation and logistics industry.
“It’s scary to speak up,” she said. “But this verdict shows that when workers do, and the law is violated, there can be real consequences.”
