Category: Transportation

  • California Court Demonstrates Impact of FMCSA Preemption Decision

    As discussed on this blog, late last year the Federal Motor Carrier Safety Administration (“FMCSA”) determined that California’s Meal and Rest Break rules are pre-empted by federal law, as applied to property-carrying commercial motor vehicle drivers covered by the FMCSA’s Hours of Service regulations. Less than five months later, the implications of this are being…

  • FedEx Looks to Shake Up Delivery Industry

    As discussed previously on this blog, the transportation market is rapidly evolving both in terms of the laws governing it and in the nature of the business itself. Now, FedEx is looking to bring the next innovation along as it announced plans for last-minute robot delivery for companies such as Pizza Hut and Walmart. This new development will…

  • Beyond California, Litigation in Other States Could Also Upend the Trucking Industry

    In California, the ongoing litigation around the definition of an employee versus independent contractor and the rules for meal and rest breaks threaten to upend the trucking industry. While these issues are understandably garnering significant attention, there are others across the country that could also have a large impact. Currently, a case in Arkansas may leave the industry forced…

  • Supreme Court Deals Blow to Trucking Companies Seeking Arbitration

    In a recent Federal Arbitration Act (“FAA”) decision, the United States Supreme Court unanimously made getting to arbitration more difficult for trucking companies. In Oliveira v. New Prime, the Supreme Court determined that it was for a court, not an arbitrator, to decide if the exemption in Section 1 of the FAA applies. More importantly for…

  • New Labor Commissioner Decision Demonstrates Continuing Attacks on Independent Contractor Truck Driver Model

    As discussed previously on this blog, recent legal developments have complicated the business plans of trucking companies that use independent contractors as drivers. These have included the Dynamex decision that changed the 30-year-old test of whether a worker is an employee or an independent contractor, but appears applicable only in certain circumstances and for only certain legal…

  • The California Trucking Association Files Its Case Against Dynamex

    As discussed previously on this blog, the Dynamex Operations West v. Superior Court decision upended California’s independent contractor market with a new test for whether a worker will be considered an employee. The new test was particularly problematic for the trucking industry. As such, several cases have arisen to challenge the Dynamex decision. The Western States Trucking Association (WTSA) challenged…

  • Is the Trucking Industry Primed for an Uber-Style Overhaul?

    Manbang, China’s “Uber-for-Trucks” is securing funds to support expansion of its driverless program, and the company has already invested in a Silicon Valley driverless truck start-up. While the company is still establishing itself in China, it’s success or failure could be a signal for similar companies in the United States. We’ve already seen ride-sharing and delivery-based…

  • New State Law Puts Shipping Customers at Risk

    Governor Jerry Brown recently signed SB 1402, which quickly has shippers, particularly larger retailers, facing new levels of potential liability. The bill means retailers will now be held jointly liable when the trucking companies they hire for port drayage services violate state employment laws. The law comes at a time with ongoing claims by truck…

  • California Continues to Pressure the Trucking Industry Nationwide

    Backed by many in the trucking industry, the Environmental Protection Agency is planning to implement new limits on commercial truck emissions. The new limits appear to be in response to California pushing ahead with laws of its own. While the State of California also favors nationwide rules, the trucking industry appears to back the move by the…

  • Western States Trucking Association Challenges Landmark Independent Contractor Decision Dynamex

    On April 30, 2018, the California Supreme Court upended the state’s independent contractor market with its decision in Dynamex Operations West v. Superior Court. The Court’s ruling changed the way court’s will determine whether a worker is an employee or an independent contractor. The case discards the decades-old test established in S. G. Borello & Sons, Inc.…

  • Dynamex: The California Supreme Court Upends the State’s Independent Contractor Market

    On April 30, 2018, the California Supreme Court upended the state’s independent contractor market with its decision in Dynamex Operations West v. Superior Court. The Court’s ruling changed the way the law will determine whether a worker is an employee or an independent contractor. The case discards the decades-old test of S. G. Borello & Sons, Inc.…

  • Transportation law is a broad world: What does it encompass?

    Here’s a candidate for one of the less glitzy and front-page-laden areas of law in California (something like celebrity divorce might come to mind for some of our readers seeking to conjure up a quick example of legal-based news that routinely scores as a media headline): transportation law. That particular legal realm is decidedly not…

  • Court Finds Southern California Truck Drivers to be Independent Contractors

    Larson & Gaston recently won a major transportation law defense victory on behalf of one of its motor carrier clients.  Four of the carrier’s owner-operators filed claims with California’s Division of Labor Standards Enforcement (DLSE), claiming to be employees of the motor carrier rather than independent contractors. This is a common accusation in the ongoing wave…

  • Three New California Laws Affecting Trucking Companies, Part 3: AB 621

    AB 621 (Amnesty for Converting Independent Contractor Drayage Drivers to Employees) AB 621 establishes a new section of the Labor Code that allows a motor carrier performing drayage services to be relieved of liability for statutory or civil penalties associated with misclassification of commercial drivers as independent contractors if the motor carrier enters into a…

  • Labor dispute resolved but per diem charges for containers linger on

    With the recent announcement that the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have reached a tentative agreement to the on-going labor dispute on the West Coast, the issue becomes how to clear the tremendous backlog of containers in the Ports of Long Beach and Los Angeles. Estimates are that…

  • Per diem charges for containers a growing concern

    Every year trucking companies in Southern California routinely pay thousands even tens of thousands of dollars in “per diem” charges to equipment providers in the Ports of Long Beach and Los Angeles.  These charges accrue on a daily basis for late returns of empty containers.  Since the Fall of 2014, however, the frequency and amount…