Scopelitis, Garvin, Light, Hanson & Feary, P.C.

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. 

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.

Judge Benitez of the U.S. District Court for the Southern District of California held a hearing in the California Trucking Association’s (CTA) challenge to enforcement of AB 5 against the trucking industry.

The Supreme Court denied review of the 9^th Circuit’s reversal of the injunction against enforcement of California’s AB 5 against the trucking industry. 

Although three federal preemption of state law regulating prices, routes, or services cases involving transportation were distributed for the Court’s June 23 conference, no decision on whether to hear California Trucking Association v. Bonta (the trucking industry challenge to California’s AB 5’s restrictive employment test) or Virgin America v. Bernstein (an airlines looking at a similar preemption statute) was issued today.

The California Trucking Association’s (CTA) challenge to enforcement of AB 5 against the trucking industry was distributed today for consideration by the Supreme Court at its conference scheduled for June 23.

In a unanimous decision (8-0, with Justice Barrett recused) today, the U.S. Supreme Court clarified who qualifies as a “transportation worker” for purposes of the exemption from the Federal Arbitration Act (FAA).

A former employee over-the-road truck driver for a national motor carrier sued in Washington federal court seeking to represent a class of Washington-resident drivers to recover damages under Washington law for unpaid minimum wage, overtime, rest breaks, and derivative claims. Washington is one of a few states that does not exempt interstate over-the-road truck drivers from state overtime laws. 

The Solicitor General (SG) of the United States (the federal government’s representative before the Supreme Court) filed a brief recommending the Supreme Court deny review of California Trucking Association’s (CTA) case challenging the application of AB 5.

Congress passed H.R. 4445, the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.” The primary provisions of the new law appear to fall outside of the Federal Arbitration Act (FAA). However, the law does amend certain parts of the FAA to ensure that the new provisions concerning sexual assault and harassment claims apply “notwithstanding” anything to the contrary found in the FAA. Our arbitration team shares key takeaways for transportation providers.

The Supreme Court ordered a stay of OSHA’s COVID-19 Vaccination and Testing Emergency Temporary Standard (ETS). The Court held that Congress had not given OSHA authority to issue such a sweeping regulation addressing a public health concern that was not an occupation-specific risk. 

This week, an Illinois Appellate Court issued a ruling with the potential to dramatically increase liability under Illinois' Biometric Information Privacy Act (BIPA), which could lead to many more class action lawsuits against transportation companies operating in Illinois.

New guidance from the IRS makes clear that motor carriers with drivers subject to hours of service requirements can temporarily deduct the meal portion of per diem expense reimbursements at 100% instead of 80%.

The Judicial Panel on Multidistrict Litigation held a lottery which determined that the multiple challenges to OSHA's ETS on COVID-19 Vaccination and Testing would be consolidated and heard in the United States Court of Appeals for the Sixth Circuit.
 

The Supreme Court invited the Solicitor General to file a brief expressing the federal government’s views on whether the Supreme Court should hear California Trucking Association’s suit claiming federal law preempts California’s AB 5, which imposes a restrictive ABC test to determine worker classification.

The United States Court of Appeals for the Fifth Circuit issued a temporary stay of the Occupational Safety and Health Administration’s (OSHA) Emergency Temporary Standard (ETS) on Vaccines and Testing, which applies to employers with more than 100 employees.

President Biden announced an action plan which called for OSHA to draft and issue ETS designed to reduce Covid-19 infection numbers. Specifically, the President has called for private employers with at least 100 employees to ensure either that (1) all employees are vaccinated; or (2) all employees are tested at least weekly.

The IRS released Notice 2021-52 announcing the new Special Per Diem Rates for 2021-2022. Read more about rate increases, when the new rates take effect, and how to access the notice.

The United States Court of Appeals for the Ninth Circuit granted California Trucking Association’s request for a stay of the mandate in order to allow CTA to petition the Supreme Court for review of the Ninth Circuit’s holding in CTA v. Bonta that the restrictive ABC test in AB-5 is not preempted by the Federal Aviation Administration Authorization Act of 1994.

The United States Court of Appeals for the Ninth Circuit has denied the California Trucking Association’s (CTA) request for an en banc review of the Ninth Circuit’s April 28 decision that found the CTA was unlikely to succeed on its claim that the Federal Aviation Administration Authorization Act of 1994 (F4A) preempts AB-5, the California legislature’s imposition of a restrictive ABC test.