Congress Passes Highway Bill

President Obama signed into law on July 6, 2012 legislation to continue federal funding for highway and bridge improvement projects through September 2014. This bill also significantly toughens household goods entry requirements to help rid the industry of rogues; it protects the Carmack Amendment; it lays the groundwork for possible improvement to the hours-of-service rule; it mandates electronic logging devices; it provides a process for expediting CDLs for veterans; it cracks down on reincarnated carriers; and it establishes a national alcohol and drug clearinghouse.

NEW JERSEY FEDERAL COURT DISMISSES CLASS ACTION SUIT BY INDEPENDENT OPERATORS

Last week, a federal court in New Jersey dismissed a federal Fair Labor Standards Act class action, filed against Ironbound Express last year by independent operators who claimed that they were misclassified. ATA, along with the NJMTA, filed an amicus brief in the case, arguing that under the “right of control” standard, the plaintiff drivers were properly deemed independent contractors. The court agreed: it applied a six-factor test to determine whether the drivers were independent contractors or employees. The court concluded that four of those factors (right of control; opportunity for profit or loss; investment in equipment; and special skill requirements) weighed in favor of independent contractor status, while only two of the factors (permanence of working relationship; and degree to which the service is integral to the business) were suggestive of an employer-employee relationship. On balance, the court held that “the circumstances of the whole activity” demonstrated that the drivers were independent contractors, and dismissed their claims. (American Trucking Associations)