On October 30, 2025, the Labor Commissioner’s Office (LCO) reported that it fined Costco, Ryder Last Mile, and Mega Nice Trucking for misclassifying 58 delivery drivers and breaking labor laws in San Diego County. Mega Nice Trucking, based in Chula Vista, served as a subcontractor for Ryder Last Mile, which contracted drivers to deliver large items from big-box stores across the San Diego area. An investigation led by the LCO’s Bureau of Field Enforcement (BOFE) found that Mega Nice Trucking treated its drivers as independent contractors rather than employees, and that drivers did not receive basic rights such as minimum wage, overtime pay, or required meal and rest breaks.
In 2023, Mega Nice Trucking purportedly changed the status of its delivery drivers to employees. Nonetheless, wage violations continued. The drivers were not paid overtime, or missed meal breaks, and received a flat daily rate, instead of an hourly rate. Investigators also found fake payroll records.
In July 2024, Costco and Ryder Last Mile also reportedly received penalty citations after two former delivery drivers who were under the companies' direct and indirect control filed complaints. Both companies purportedly set delivery schedules, required uniforms, enforced specific work rules, and closely monitored the drivers.
As a result, Costco and Ryder Last Mile were considered “joint employers” with Mega Nice Trucking, making all three companies responsible for the wage theft. Mega Nice Trucking admitted misclassifying its workers, even after being penalized before for similar violations, showing a pattern of breaking labor laws. The LCO issued a total of $868,128 in citations to the three companies. Of that amount, $662,978 will be paid directly to the workers. All three companies have appealed the decision.