Trucking Industry Independent Contractors

News & Analysis as of

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

Flash No. 45 – Failing to Follow the Guidance from the “Recipe Book” may be Very Costly

The Federal Leasing Regulations are often referred to within the industry as the “Recipe Book” for the typical independent contractor/owner-operator business model. The Regulations provide the ingredients that must be...more

December 2014 Independent Contractor Compliance and Misclassification Update

SUPPLIER OF INSTALLATION SERVICES FOR LARGE SATELLITE TV COMPANY CANNOT DISMISS IC MISCLASSIFICATION CLAIM BY INSTALLER. A federal district court in Mississippi last month denied cross-motions for summary judgment in an FLSA...more

November 2014 Independent Contractor Compliance and Misclassification Update

This month’s headline developments are two independent contractor misclassification class action lawsuits: one was filed in New York against a Silicon Valley giant, Google Inc., and the second was filed in California against...more

Employment Law - November 2014

State Voters Pass Paid Sick Leave, Wage Increases - Why it matters: The polls have closed and the votes are in: The midterm elections will have a significant impact on employers across the country as voters in multiple...more

Truckers Getting Scammed

Truckers who are injured in trucking accidents are more often lately victims of insurance scams perpetrated by disreputable employers. The more serious the injury, the more likely the trucker will be scammed. This is how it...more

Flash No. 43 - A Favorable Decision Regarding the Massachusetts "ABC" Test

The saga surrounding the challenges to the Massachusetts “ABC” Test for independent contractors has taken a potentially positive turn for the transportation industry. A decision issued by the U.S. Court of Appeals for the...more

‘Entrepreneurs’ or Exploited Workers?

For years, employers have reacted to the size and breadth of employment laws and regulations in California by finding other means of classifying people who perform services for them. As a result, California employers today...more

9th Cir. Finds FedEx Delivery Drivers Are Employees, Not Contractors

Last week, the 9th Circuit held in two related cases from California and Oregon that FedEx misclassified approximately 2,600 delivery truck drivers as independent contractors, rather than as employees. The cases—Alexander v....more

Sea Change: Ninth Circuit Holds That FedEx Drivers Are Employees — Not Independent Contractors

The Ninth Circuit recently addressed the nearly decade long misclassification dispute between FedEx and its drivers, holding that drivers in California (as well as in Oregon) are FedEx employees, not independent contractors. ...more

August 2014 Monthly Independent Contractor Compliance and Misclassification Update

This month’s headline development are the seismic decisions, issued on August 27, 2014 by the U.S. Court of Appeals for the Ninth Circuit, concluding as a matter of law that FedEx Ground had misclassified over 2,300 drivers...more

Ninth Circuit Reverses District Court, Rules FedEx Drivers in California and Oregon are Employees

Last week the Ninth Circuit issued a pair of decisions in the nearly-decade long misclassification dispute between FedEx and its drivers, with the Court of Appeals ruling that drivers in California and Oregon are FedEx...more

Flash No. 41: How The NLRB and 2 All-Beef Patties Resonate with Trucking

The National Labor Relations Board (“NLRB”) General Counsel’s July 31 announcement that he will name McDonald’s U.S.A. LLC as a joint employer in dozens of unfair labor practice cases filed on behalf of employees of...more

Washington Court of Appeals Holds Independent Contractors Are Protected from Retaliation by the Washington Law Against...

The Washington courts are strict in their interpretation of the classification of individuals as employees versus independent contractors, resulting in many an employer discovering that an “independent contractor” is instead...more

Quirky Question # 238, No Laughing Matter – Company Found Liable for Wrongfully Terminating Independent Contractor’s Agreement

Question: My company relies on independent contractors, over whom we don’t exert control. They often joke around with each other. I’m not liable for employment discrimination if I terminate one of them after they...more

No Laughing Matter: Company Found Liable for Wrongfully Terminating Independent Contractor’s Agreement after a Complaint about a...

Companies using independent contractors should be aware of increased enforcement efforts from federal and state labor and tax authorities over misclassification of workers under wage and hour and tax laws. In Washington, this...more

July 2014 Monthly Independent Contractor Compliance and Misclassification Update

The leading development this month in the area of independent contractor compliance and misclassification is an Arizona case that deals with a commonplace event – but one that carries with it the potential for unanticipated...more

Motor Carriers Face Uphill Battle After California Supreme Court Decision

Harris v. Pac Anchor Transportation, Inc., No. S194388 (July 28, 2014): In a unanimous decision, the California Supreme Court has held that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not...more

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