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For decades, the practice of motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of a recent court decision.
On April 28, 2021, in
CTA v. Bonta”), the United States Court of Appeals for the Ninth Circuit addressed whether the broad preemption language of the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) precludes enforcement of California’s Assembly Bill 5 (“AB-5”) against motor carriers operating in California. (AB-5 is discussed here.) In a split 2-to-1 decision that may have enormous (adverse) implications for motor carriers operating in California, the Ninth Circuit held that the California Trucking Association (“CTA”) was unlikely to succeed on the merits of its lawsuit challenging AB-5 because it conclu
Driver shortage may affect commerce
Transportation experts predict a 25%-30% decrease in Class A drivers
YUMA, Ariz. (KYMA, KECY) - The latest report from the California League of Food Producers shows a dramatic decrease in Class A drivers. According to the CLFD during the recent carrot and onion harvest demand for drivers were at an all time high.
Transportation experts are reporting that many drivers opted not to work during the pandemic in fear of contracting the deadly Coronavirus. So, commerce turned to Capitol Hill which in turn Caltrans raised the allowable weight limit to offset the driver shortage.
The California Trucking Association predicts that the need for drivers will continue to raise. According to the CTA, the average age of drivers on the road is 50-years old.
Motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of decision in California Trucking Ass’n v. Bonta,
California Trucking Association v. Bonta
, No. 20-55106, 2021 WL 1656283 (9th Cir. Apr. 28, 2021)
Summary:
The Federal Aviation Administration Authorization Act does not preempt the “ABC test” for determining whether a worker was an employee or independent contractor.
Read our in-depth analysis HERE.
Wilson-Davis v. SSP America Inc., No. B306781, 2021 WL 1338078 (Cal. Ct. App. Mar. 11, 2021)
Summary:
A collective bargaining agreement will not be interpreted as requiring arbitration of statutory wage-and-hour claims unless it contains a clear and unmistakable agreement to arbitrate such claims.
Facts: Plaintiff Tramon Wilson-Davis was employed as a dishwasher by Defendants SSP America LAX, LLC (“SSP LAX”) and SSP America, Inc. (“SSP Inc.”) (food, beverage, and concessions services providers at Los Angeles International Airport). In December 2018, SSP Inc. and labor union Unite Here Local 11 entered into a collective bargaining agreement covering “certain e
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April 2021 was a meaningful month for two industries that are hardly strangers to lawsuits involving the status of workers as independent contractors. A federal district court in the District of Columbia issued an extremely favorable decision for Lyft, holding that a driver and members of a class action are not covered by the interstate transportation worker exemption from arbitration under the Federal Arbitration Act, even though drivers in a locality such as D.C. often drive in interstate commerce. The court concluded that the arbitration exemption in the FAA must be determined by reference to all drivers providing services to a company’s customers nationally, not locally, and found that crossing state lines is not commonplace among Lyft drivers in most locations where Lyft operates. Meanwhile, in an appellate decision by a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit, two of the three pan