This according to transportation and employment law attorney Eddie R. Wayland, a partner at the Nashville-based King & Ballow law firm, who said recent decisions by the 9th Circuit Court of Appeals could cause carriers in states under 9th Circuit jurisdiction to be susceptible to lawsuits challenging the way that fleets use independent contractors in their business.
Wayland’s words of caution come after three rulings this summer by the 9th Circuit, all of which were unfavorable to the trucking industry, Wayland said.
The most recent ruling came down this week and involved FedEx Ground, and the court ruled that about 2,300 of the carriers’ drivers in California between 2000 and 2007 were wrongly classified as independent contractors and were instead employees.
The court made a similar ruling in June in a case involving Affinity Logistics, a Georgia-based carrier who was sued by drivers based in California. The drivers claimed — because of their classification as independent contractors — they were being denied compensation and other benefits they were entitled to.
Lastly, the 9th Circuit ruled in July that contractors for Penske Logistics in California were entitled to the state’s mandatory meal and rest breaks, despite their classification.
The Penske case, though seemingly more minor than the other two, could have the most potential to see further action, Wayland said, as the 9th Circuit’s decision involved interpreting federal law and its application in one state, whereas the other two cases simply involved interpretation of California laws.
