News & Analysis as of

Transportation Industry Employer Liability Issues

Phelps Dunbar

TX Supreme Court Emphasizes Negligence Does Not Always Result in “Negligent”

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In a recent opinion issued on June 27, the Supreme Court of Texas emphasized that the presence of negligence does not always lead to liability, and Texas law requires more from those seeking such a finding....more

Parker Poe Adams & Bernstein LLP

Department of Transportation English Proficiency Guidance Takes Effect in Late June

Last month, President Donald Trump signed an executive order directing the Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) to begin enforcement of English language proficiency (ELP)...more

Benesch

The Devil You Don’t Know - Might Not Be So Bad! Good News for Driver Credit and Background Checks

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In this era of driver and employee shortages, employers of all kinds -  motor - carriers, freight intermediaries and shippers, should be aware of a byzantine array of federal statutes that could confer liability upon them,...more

Husch Blackwell LLP

FAAAA Circuit Split Remains Unresolved as U.S. Supreme Court Denies Certiorari in Gauthier vs. TQL

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On January 13, 2025, the U.S. Supreme Court declined to grant certiorari in the case of Gauthier vs. Total Quality Logistics, leaving the decision of the Eleventh Circuit Court of Appeals intact. This means that freight...more

Amundsen Davis LLC

7th Circuit Again Upholds Preemption of Negligent Hiring Claims Against a Freight Broker

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The Seventh Circuit Court of Appeals recently issued another important ruling for brokers, upholding that a claim for negligent hiring against a freight broker was preempted by the Federal Aviation Administration...more

Foster Swift Collins & Smith

[Webinar] 2024 Labor & Employment Law Virtual Update - September 18th, 8:30 am - 11:00 am ET

It has been a particularly busy year on the labor and employment law front. To learn more about the major challenges employers face and developments your organization needs to address before year's end, we encourage you to...more

BakerHostetler

5th Circuit: Motor Carrier Act Applies to Intrastate Transport of Goods in the Flow of Interstate Commerce

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The Fair Labor Standards Act (FLSA) requires that employers pay certain employees one-and-a-half times their regular rate of pay for any hours they work over 40 in a workweek. There are, however, several exemptions from the...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Finds Shipping Warehouse Employee Qualified as Exempt “Transportation Worker” Under the Federal Arbitration Act

On March 12, 2024, the Ninth Circuit published a decision in Ortiz v. Randstad Inhouse Services, LLC, holding that the Plaintiff Adan Ortiz (“Plaintiff”) qualified as a “transportation worker” under the Federal Arbitration...more

Morgan Lewis

US Supreme Court Clarifies Application of Federal Arbitration Act’s ‘Transportation Worker’ Exemption

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In Bissonnette v. LePage Bakeries, a unanimous Supreme Court clarified the scope of the Federal Arbitration Act’s (FAA’s) “transportation worker” exemption by rejecting the industry-based test applied in the Second Circuit....more

ArentFox Schiff

Supreme Court Holds That the FAA’s Transportation Exemption Applies to all Employees Involved in Interstate Transportation

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Enacted in 1925, the Federal Arbitration Act (FAA) reflects the nation’s policy favoring arbitration agreements. Employers routinely rely on the FAA to compel aggrieved employees to press their disputes before an arbitrator,...more

Holland & Knight LLP

Food Delivery Drivers' Misclassification Suit May Be Exempt from Arbitration

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The U.S. Supreme Court decided Bissonnette, et al. v. LePage Bakeries Park St., LLC, et al. on April 12, 2024. In a unanimous decision written by Chief Justice John Roberts, the Court held that a transportation worker need...more

Amundsen Davis LLC

[Webinar] Independent Contractors in the Transportation Industry – Is Your Business Compliant? - May 15th, 10:00 am CT

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The Department of Labor (DOL) recently published a final rule on independent contractor classification under the Fair Labor Standards Act (FLSA). Transportation and logistics companies using independent contractors for...more

Holland & Knight LLP

U.S. Supreme Court Hears Argument on Arbitration Exemption for Food Delivery Drivers

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The U.S. Supreme Court heard oral argument on Feb. 20, 2024, on whether food distributors are exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA), governing "contracts of employment of seamen,...more

Steptoe & Johnson PLLC

Hazard Alert! Don’t Ignore OSHA’s Updated Electronic Submission Requirements for Employers

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Effective January 1, 2024, the Occupational Safety and Health Administration’s (OSHA) new record-keeping rule will now require employers with 100 or more workers in OSHA’s “highest hazard” industries to electronically file...more

Amundsen Davis LLC

Beware! – Illinois Employers Can Be Liable For An Employee’s Negligence

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Courts in the United States are split on whether a company’s acknowledgment of vicarious liability for an employee’s negligence, bars a claim of direct negligence against the company. Based on appellate court decisions,...more

FordHarrison

Transportation Industry Alert: Second Circuit Narrowly Construes FAA's Transportation Workers Exemption

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Executive Summary: What employees qualify as “transportation workers” such that they are exempt from the Federal Arbitration Act (FAA)? The Second Circuit endeavored to answer that question on May 5, 2022, in an important...more

Burr & Forman

LeDure v. Union Pacific: Locomotive Inspection Act Case Law Stays Intact and “In Use” For Now

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Interpretation of the phrase “in use” as used in the Locomotive Inspection Act (LIA) continues to baffle courts across the country, including the Supreme Court of the United States. On April 28, 2022, the Supreme Court let...more

Fisher Phillips

Transportation Mask Mandate Struck Down: What it Means for Employers

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After the news yesterday that a federal court judge struck down the CDC’s mask mandate for airplanes, mass transportation, and transit hubs, many employers immediately wondered what it might mean for their business. Though...more

Fisher Phillips

Flash Survey Reveals: West Coast Workplace Litigation Explosion May Soon Spread Across Country

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West coast employers have been dealing with a new era of workplace litigation since the start of the pandemic, one that features increased claims, higher settlement demands, and more aggressive plaintiffs’ counsel – and if...more

CDF Labor Law LLP

Federal Regulations Trump California’s Meal and Rest Break Rules For Short Haul Drivers Too

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Employers in the trucking industry have repeatedly tried to challenge the applicability of California’s stringent meal and rest break laws to their workers, in light of the practical difficulties of complying with those rules...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Unpaid Motor Carrier Claims: What Shippers Can Do to Reduce the Risk of Liability When Using Third-Party Brokers

With the effects of the ongoing pandemic and ever-changing economic conditions being felt throughout the transportation industry, our firm has recently seen an increase in claims by unpaid motor carriers against shippers and...more

U.S. Equal Employment Opportunity Commission...

EEOC Sues Professional Transportation for Disability Discrimination

Transportation Company Refused to Hire Worker Because of Medical Treatment for Opioid Addiction, Federal Agency Charges - BLUEFIELD, W.V. – Professional Transportation, Inc. (PTI), a transportation company head­quartered...more

Proskauer - California Employment Law

Airline Employees Whose Base of Work Is In California Must Receive Legally Compliant Wage Statements

Ward v. United Airlines, Inc., 2020 WL 3495310 (Cal. S. Ct. 2020) - Plaintiffs are pilots and flight attendants for United Airlines, which is based outside California. Although they reside in California, they perform most...more

Jones Day

Steps Companies Should Take to Protect Themselves from the Legal Fallout of the Coronavirus

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The novel coronavirus (COVID-19) outbreak, first identified in Wuhan, China, has spread beyond China's borders to dozens of countries, infecting tens of thousands of people and causing a mounting number of fatalities. In...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Department of Transportation Issues Notice on Use of CBD Products by Safety-Sensitive Employees

The Department of Transportation’s (DOT) recent notice on the use of cannabidiol (CBD) products serves as a warning to employees in DOT-defined safety-sensitive positions. While the DOT has always had clear regulations...more

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