Trucking Industry Independent Contractors

News & Analysis as of

InterConnect FLASH! No. 54 - Finally! Prong 2 Of The Massachusetts "ABC" Test Is Dead!

On May 11, 2016, the First Circuit Court of Appeals rendered a decision in Massachusetts Delivery Association v. Healy (the “MDA case”) preempting Prong 21 of the Massachusetts Independent Contractor Law (the “Massachusetts...more

April 2016 Independent Contractor Misclassification and Compliance News Update

This past month involved the settlement of a number of high profile IC misclassification cases. In one case, a federal court gave conditional approval to a $226 million settlement between FedEx and its Ground Division...more

NLRB Regional Director Files a Complaint Alleging that Misclassification of Workers as Independent Contractors is an Unfair Labor...

On April 18, the Regional Director for the National Labor Relations Board (the “NLRB”)’s Los Angeles office issued an unfair labor practice complaint against a transportation company, alleging that the company had...more

Is the NLRB Trying to Make Independent Contractor Misclassification an Unfair Labor Practice?

A Regional Director for the NLRB issued an unfair labor practice complaint on April 18, 2016 alleging that a transportation company “has misclassified its employee-drivers as independent contractors, thereby inhibiting them...more

The Potential Chain Behind This Supply Chain Order

The April start? Unless the Road Safety Remuneration Tribunal (RSRT) delays the commencement date for the Contractor Driver Minimum Payments and Road Safety Remuneration Order 2016 (RSRO 2016), the order will commence...more

Employee Exclusion Applies to Independent Contractor Truck Driver

An auto insurer had no duty to defend a trucking company against an injured driver’s claim because the insurance policy excluded claims by “employees,” notwithstanding that the driver was technically an independent...more

November 2015 Independent Contractor Compliance and Misclassification News Update

PORT TRUCK DRIVERS FILE ANOTHER CLAIM AGAINST TRUCKING COMPANIES IN CALIFORNIA FOR IC MISCLASSIFICATION. - Long Beach and Los Angeles port truckers, who allege that they have been misclassified as independent...more

California Court Deems Truck Drivers Employees, Not Independent Contractors

Companies that classify workers as independent contractors are facing increasing scrutiny in court and before administrative agencies. A recent unpublished California Court of Appeal decision in a case titled Garcia v. Seacon...more

InterConnect - Summer 2015

Shippers who are used to doing business with motor carriers often present freight brokers with a shipper-carrier agreement (often described as a “Motor Carrier Agreement”) of one kind or another to serve as the basis of a...more

InterConnect - Summer 2015

Shippers who are used to doing business with motor carriers often present freight brokers with a shipper-carrier agreement (often described as a “Motor Carrier Agreement”) of one kind or another to serve as the basis of a...more

July 2015 Independent Contractor Compliance and Misclassification News Update

This July was another month where independent contractor compliance and misclassification was a topic that made front page news. Hillary Clinton placed independent contractor misclassification in the national spotlight when...more

DOL WAGE & HOUR DIVISION’S “ADMINISTRATOR’S INTERPRETATION” NO INDEPENDENT CONTRACTOR COUP DE GRÂCE FOR TRUCKING—JUST NEW...

On July 15, 2015, David Weil, Department of Labor Wage and Hour Division (the “Division” Administrator, issued the much anticipated and promised “administrator’s interpretation” (the “Memo”) on the issue of worker...more

U.S. Department of Labor Issues New Guidance on Misclassification of Employees as Independent Contractors

The U.S. Department of Labor (DOL) issued guidance on July 15 aimed at curbing the misclassification of employees as independent contractors. The guidance provides several examples of workers in the construction industry. ...more

District Court Confirms Federal Preemption in Massachusetts “ABC Test” Litigation

Yesterday, Judge Denise Casper of the District of Massachusetts issued an industry friendly ruling in Massachusetts Delivery Association v. Healy, awarding summary judgment to the Massachusetts Delivery Association (“MDA”)...more

The “Independent Contractor” Truck Driver, Wage & Hour Laws, the Affordable Care Act, and Safety Regulations

On The challenges that trucking companies face regarding truck drivers continue to expand. One vexing issue facing many companies: Can they continue to treat many of their truck drivers as “independent contractors” as they...more

Federal Judge Holds FAAAA Preempts a Critical Portion of the Massachusetts Independent Contractor Law

On July 8, 2015, a federal district court judge held that a section of the Massachusetts Independent Contractor law, as applied to same-day delivery services, is preempted by the Federal Aviation Administration Authorization...more

FedEx to Pay $228 Million in Independent Contractor Misclassification Settlement

Things that $228 Million will buy: – LeBron James’s waterfront mansion in Miami, listed for $15 million – A 710-year old copy of the Magna Carta, sold in 2007 for $21.3 million – The Oakland A’s, sold in 2005 for $180...more

Motor Carriers Are Liable For Injuries to Drivers of Leased Vehicles Who Are Classified As Independent Contractors

Jose Vargas v. FMI, Inc. et al. - In Vargas, California’s Second Appellate District held that the Privette doctrine does not shield a motor carrier operating under a federal franchise from liability for tort injuries...more

March 2015 Independent Contractor Compliance and Misclassification News Update

This past month’s headline developments involve three major developments in the area of independent contractor (IC) misclassification. The first case involves a large department store that agreed to pay most of the costs of...more

Employer Met Its Burden Of Proving At Least $5 Million Amount In Controversy For CAFA Removal

In this putative class action, plaintiffs alleged that Knight Transportation had misclassified them as independent contractors when in fact they were employees who were not reimbursed their lease-related and fuel costs as...more

February 2015 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are a set of cases reported in February dealing with class action IC misclassification claims: the highest court in a key state agreeing to decide whether a worker-friendly test should be...more

The Interconnect Flash - No. 46: Court Deals Crushing Blow to Massachusetts Independent Contractor Law

On February 5, 2015, Judge Robert G. Stearns issued industry-favorable decisions in two worker classification suits pending in the United States District Court for the District of Massachusetts. Based upon the First Circuit...more

Bumpy Ride: How Rideshare Programs Are Challenging Worker Classification and Raising Questions About a Potential Need to Modernize...

Rideshare services, which typically work by having users arrange rides using mobile apps on their phones with drivers who decide whether they want to provide a ride to a user at their discretion, have grown immensely in...more

The Next Wave of Joint Employment Litigation

A looming surge of cases threatens to expand the joint employment doctrine and fundamentally alter the operations of franchisors, retailers, and businesses utilizing independent contractors within the four walls of their...more

January 2015 Independent Contractor Compliance and Misclassification Update

JANITORIAL FRANCHISE COMPANY SETTLES ITS APPEAL OF $4.8 MILLION JUDGMENT IN FAVOR OF MISCLASSIFIED CUSTODIANS. Coverall North America Inc. settled the independent contractor misclassification case filed against it by a class...more

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