Scopelitis Law Firm - Attorneys - Trucking

News & Analysis

Law Alert: FMCSA Announces Guidance on Definition of “Broker” and “Bona Fide Agent” as well as on Role of Dispatch Services

FMCSA will issue guidance regarding the definition of what constitutes a “broker” and a “bona fide agent” of a broker. The guidance is not a rulemaking and will be effective immediately. However, FMCSA has nevertheless requested comment on the guidance and may issue updated guidance based on comments received. The comment period will be open for 60 days. The guidance is issued pursuant to a mandate of the IIJA, which directed FMCSA to consider the role of so-called “dispatch services” in transportation and whether such services can be considered a “bona fide agent” of a motor carrier. The question of whether a dispatch service can be a bona fide agent of a motor carrier is important because bona fide agents of motor carriers are not required to hold broker authority when acting in the capacity of an agent of the motor carrier.

Law Alert: USDOL Releases Proposed Rule On Worker Status Under the Fair Labor Standards Act

The U.S. Department of Labor released its Notice of Proposed Rulemaking (NPRM) with respect to Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The proposal is expected to be published in the Federal Register on October 13, and the Department will accept comments for 45 days thereafter. As anticipated, the NPRM once again proposes to repeal the Department’s prior regulation on the same subject issued under the Trump administration (an earlier attempt at repeal was held improper by a federal district court) and replace it with a regulation it claims is more aligned with judicial precedent. Read more on this from Scopelitis.