News & Analysis as of

Trucking Industry Independent Contractors

InterConnect Newsletter - Summer 2017

by Benesch on

The removal of CSA scores from public view may not eliminate the ability for an injured party to sue based on the negligent selection of a motor carrier, but it changes the analysis. The FMCSA still allows public access to...more

InterConnect FLASH! No. 63 - Employee v. IC: Dual Role of Agent and Small Fleet Owner

by Benesch on

The ‘Agent Model’ is commonly used by motor carriers operating with independent contractors (“ICs”) to increase capacity in various markets. The model allows the motor carrier to align certain increased costs; e.g., sales,...more

First Circuit Finds FAA Applicability A Question For Court And Holds FAA Exemption Applicable To Independent-Contractor...

by Carlton Fields on

The case presented two issues to the court: 1) whether a court must determine the applicability of the FAA to the case when asked to compel arbitration, where parties delegated questions of arbitrability to the arbitrator;...more

First Circuit Applies FAA Transportation Worker Exception to Independent Contractors

The First Circuit Court of Appeals, in a case of first impression, recently issued an important ruling that will have a major impact on transportation companies using arbitration agreements in the states and territories...more

First Circuit Finds Class of Independent Truckers Excluded From Federal Arbitration Act

The Federal Arbitration Act has been in effect for nearly 100 years (92, to be precise). Nevertheless, the First Circuit found two issues of first impression to address this month. In Oliveira v. New Prime, Inc., 2017 WL...more

InterConnect FLASH! No. 61 - Regardless of Status (Broker/Motor Carrier): Contract & Control Still Matter

by Benesch on

Courts continue to review the circumstances surrounding the degree of control exercised over transportation service providers. This has held true in several different segments of the transportation industry whether it is home...more

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

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