News & Analysis as of

Trucking Industry Independent Contractors

New District of New Jersey Case Shows Importance of Requiring Drivers to Form Corporate Entities in Misclassification Cases

by Genova Burns LLC on

Late last month, District of New Jersey Judge Robert B. Kugler partially granted FedEx Ground Package Systems Inc. (“FedEx”)’s Motion to Dismiss in a trucking misclassification case. The court dismissed several claims but...more

Of Employees and Independent Contractors: The Ninth Circuit to Consider Where Truck Drivers Fall

by Genova Burns LLC on

On February 24, 2017, Senior U.S. District Judge John W. Sedwick in the district of Arizona stayed a proposed class action in Virginia Van Dusen et al v. Swift Transportation Co., Inc. et al, No.: 2:10-cv-00899, against Swift...more

January 2017 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

January was a busy month for independent contractor misclassification – and IC compliance. In addition to Lowe’s $2.85 million settlement with installers whom it classified as ICs, Lufthansa agreed to pay $1.1 million in...more

Will Trump Administration Curb the Recent Targeting of Independent Contractors?

by Holland & Knight LLP on

A critical but unresolved issue for the motor carrier industry is the continuing viability of the independent contractor truck driver model, which is under siege by state and federal regulatory agencies as well as private...more

InterConnect FLASH! No. 59 - Massachusetts "ABC" Test Court Decision: Fresh Application On Old Spin

by Benesch on

Over the last two years, the Benesch Transportation & Logistics Team has written in various installments of the FLASH about the Massachusetts Independent Contractor Law, Mass. Gen. Laws ch. 149, §148B (the “Massachusetts...more

Massachusetts High Court Rules Prong Two of Independent Contractor Test is Severable for FAAAA Preemption Purposes

Massachusetts’s highest court recently issued a decision that impacts the ability of delivery companies operating in the commonwealth to use independent contractors in providing delivery services. In Chambers v. RDI...more

Massachusetts SJC Strikes a Blow to Massachusetts Independent Contractor Statute

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Massachusetts Supreme Judicial Court recently held that the FAAAA preempts the second prong of the Massachusetts Independent Contractor Statute as applied to certain delivery drivers. Although the...more

Labor and Employment Group News: Independent Contractor or “Employee, Inc.”?

by Murtha Cullina on

It is usually the case that when you contract for services with another company you have engaged it as an "independent contractor." And, as a result, its employees cannot claim that you owe them overtime pay....more

November 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Our news update for last month highlights the fact that IC misclassification lawsuits are happening across the country and in virtually every industry, both in the on-demand economy and in more traditional business sectors....more

InterConnect Flash! No. 57 - 10Tth Circuit Hurls Knuckleball at Carriers Attempting ELD Roll-Outs

by Benesch on

While the rest of the country was basking in the glow of the Cleveland Indians improbable trip to the World Series last week (ok so maybe just the City of Cleveland) the 10th Circuit Court of Appeals threw a knuckleball to...more

Self-Inflicted IC Misclassification Wounds: How Did FedEx Bludgeon Itself Into Pay Nearing $500 Million to Settle Claims That It...

by Pepper Hamilton LLP on

FedEx’s costs due to IC misclassification are approaching $500 million over the past year as a result of its inability to draft in a valid manner its IC agreement and internal policies governing Ground Division drivers. Last...more

Open the Floodgates: NLRB Announces Misclassification of Independent Contractors Can, In Itself, Violate Section 8(a)(1)

On August 26, 2016, the National Labor Relations Board's Division of Advice publicly released an advice memorandum from December of 2015 in which it found a Section 8(a)(1) violation for an employer's misclassification of...more

August 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

This month’s news update includes three initiatives by the U.S. Department of Labor to combat IC misclassification. The first was the issuance of a new page on the DOL website called “Misclassification Mythbusters.” We...more

NLRB Issues Advice Memorandum Claiming That Misclassification of Employees as Independent Contractors Violates Section 8(a)(1) of...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In an advice memorandum issued on December 18, 2015, but just released to the public at the end of August, 2016, an Associate General Counsel of the National Labor Relations Board opined that an employer’s...more

NLRB General Counsel Seeks To Regulate and Target Employers with Independent Contractors

by Seyfarth Shaw LLP on

Seyfarth Synopsis: NLRB General Counsel releases an Advice Memorandum finding that the misclassification of independent contractors amounts to a standalone violation of Section 8(a)(1) of the NLRA....more

NLRB General Counsel Creates a “Misclassification-Plus” Unfair Labor Practice

by Pepper Hamilton LLP on

On August 26, 2016, the National Labor Relations Board made public an Advice Memorandum from the NLRB’s Office of General Counsel regarding an unfair labor practice case arising in the context of independent contractor...more

July 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

Four of the five independent contractor (IC) misclassification cases reported below from July 2016 illustrate how companies continue to fail to structure, document, and implement a business’s IC relationships in a manner that...more

InterConnect FLASH! No. 55 - Disruptors Continue to Create Challenges for the Independent Contractor Business Model

by Benesch on

Disruptors Continue to Create Challenges for the Independent Contractor Business Model - Our increasingly on-demand, technology-driven economy has been a petri dish for disruptive business models that are responsible...more

June 2016 Independent Contractor Misclassification and Compliance News Update

by Pepper Hamilton LLP on

The poster children of IC misclassification cases dominated the news in June: Uber, Lyft, GrubHub, FedEx, an exotic dance club, and a trucking transport company. It was not a good month for any of them, yet as we have...more

First Circuit Affirms FAAAA Preemption of Massachusetts Independent Contractor Law

On May 11, 2016, the First Circuit Court of Appeals issued the latest of several decisions supporting and furthering federal preemption of the Massachusetts independent contractor statute for businesses that qualify as motor...more

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

by Benesch on

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

by Pepper Hamilton LLP on

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...

by Hodgson Russ LLP on

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?

by Pepper Hamilton LLP on

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

by K&L Gates LLP on

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

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