Transportation Brief: Consumer Protection Class Actions — A New Favorite for IC Drivers
September 14, 2022
Recently, independent contractor drivers in Iowa, Oklahoma, Tennessee, and Utah have obtained class certification of claims alleging deceptive practices by a motor carrier under state consumer protection statutes. Contractors argue that motor carriers deceive drivers by promising monthly miles or revenue in the recruiting process that fails to materialize.
Given the statutes’ broad remedial purpose to guard against deceptive practices, when contractors present evidence they were exposed to the same promise, courts have allowed “an inference of reliance” to replace the need for traditional proof that the promise caused each contractor to sign their contract. Although this inference is subject to legal challenge, it may provide an easier path to certification and leverage to class counsel to demand a multi-million-dollar settlement. Motor carriers should carefully examine recruiting and onboarding practices and address any representations that could be interpreted as a promise of a contractor’s future income.
Transportation Brief: AB 5 Petition Denied by U.S. Supreme Court
by Shannon M. Cohen , Gregory M. Feary , Prasad SharmaOn June 30, 2022, the U.S. Supreme Court refused the California Trucking Association’s (CTA) appeal to maintain an injunction prohibiting enforcement of California’s AB 5 (the strict ABC worker status test used in California). On August 29, the injunction was lifted. AB 5 can now be enforced by state officials against the trucking industry. Transportation businesses may use various strategies in an effort to comply with AB 5, but much is still unclear. Read more from Scopelitis attorneys about thoughtful and informed strategies regarding AB 5.
Transportation Brief: Illinois Supreme Court Poised to Issue Key Biometric Privacy Law Rulings
by Jared KramerIllinois’ Biometric Information Privacy Act (BIPA) is one of the nation’s toughest laws regulating the collection, storage, and use of biometric identifiers. The Illinois Supreme Court is considering two cases that may have significant ramifications for companies that have potential exposure under the law. Read more about these cases and their potential impact on the industry.
Transportation Brief: Individual PAGA Claims Can be Arbitrated, But Only Where the FAA Applies
by Braden K. Core , Prasad SharmaThe U.S. Supreme Court held that California’s long-standing rule prohibiting parties from agreeing to arbitrate Private Attorneys General Act (PAGA) claims is preempted by the Federal Arbitration Act (FAA). However, there are limits to the holding. Read more from Scopelitis on those limits.
Transportation Brief: Supreme Court Addresses “Transportation Worker” Exemption from the FAA
by Braden K. Core , Prasad SharmaIn a unanimous opinion, the U.S. Supreme Court clarified who qualifies as a “transportation worker” for purposes of the exemption from the Federal Arbitration Act (FAA). In Southwest Airlines v. Saxon, the Court held that an airline’s ramp supervisor, who regularly performed loading and unloading of luggage, mail, and cargo, was exempt from the FAA. Read more about the Court’s reason and how it might apply to workers.
Transportation Brief: Spotlight on The Firm’s Air and Ocean Practice
by Braden K. Core , Nathaniel G. SaylorFreight forwarders that handle air and ocean cargo face a daunting set of legal hurdles at every turn. The Scopelitis Air and Ocean Practice helps clients navigate this often-uncertain legal environment by charting a course to success that aligns with the unique objectives of each business. Learn more about how Scopelitis attorneys help businesses with air cargo and ocean cargo issues, respectively.
Transportation Brief: For the Record, Summer 2022
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