Transportation Brief: No Circuit Split (Yet) on the FAA “Transportation Worker” Exemption
November 2, 2020
In the Summer edition of The Transportation Brief, we discussed the First Circuit’s recent holding that Amazon’s “AmFlex” delivery drivers are exempt from the Federal Arbitration Act (FAA), even if they do not cross state lines, because the goods they transport are moving in interstate commerce. Since then, the Ninth Circuit has agreed with the First Circuit in another case involving AmFlex drivers (over a strong dissent), while the Seventh Circuit reached the opposite conclusion (i.e., that delivery drivers are not exempt) in a case involving GrubHub. It might appear that the Seventh Circuit’s holding conflicts with the two cases involving Amazon, but the unique nature of prepared-food delivery seems to have influenced the court’s analysis, so it is not clear what test the Seventh Circuit would apply when the delivery of goods is at issue. The Eleventh Circuit is considering such a case, and there is a possibility of a circuit split emerging due to precedent in that circuit. Scopelitis is closely monitoring these developments and will share updates as these holdings develop.
Transportation Brief: Prop 22’s Impact on the Transportation Industry
by Shannon M. Cohen , Gregory M. Feary , Christopher C. McNattThe gig economy – spearheaded and underwritten by major gig economy companies such as Uber, Lyft, and Doordash – has launched a high-profile campaign to prevent the application of California’s AB 5 law (and the ABC test it dictates) to determine a worker’s employee status.
Transportation Brief: DOL Publishes IC Rule
by Shannon M. CohenOn September 25, 2020, the US Department of Labor (DOL) published a Notice of Proposed Rulemaking (NPRM) to develop a consistent test for determining independent contractor (IC) status under the Fair Labor Standards Act (FLSA).
Transportation Brief: Ongoing Developments with the FLSA Joint Employer Rule
by Kelli M. Block , A. Jack Finklea
Earlier this year, the US Department of Labor (DOL) implemented a Final Rule providing direction on joint employer liability for federal wage and hour violations.
Transportation Brief: Spotlight on Mergers & Acquisitions
by Gregory M. Feary , Kathryne S. Feary-Gardner , Andrew K. Light , W. Todd Metzger , Jay D. Robinson,News regarding independent contractor misclassification considerations continues to make headlines. Among the many reasons that industry leaders follow these developments so closely is their potential to materially impact a business’s sale—both for a seller or a buyer.
Transportation Industry News & Trends