Independent contractors

Groups lose latest court attempt to block California’s AB5 from state’s trucking sector

In a sweeping decision, a federal district court judge in California on Friday rejected arguments that the state’s independent contractor law, AB5, should be barred from regulating California’s trucking industry.

Judge Roger Benitez of the California federal district court for the state’s Southern district not only failed to order a new injunction, he also tossed out the case brought by the California Trucking Association (CTA) and the Owner-Operator Independent Drivers Association (OOIDA), with...

https://www.freightwaves.com/news/groups-lose-latest-court-attempt-to-block-californias-ab5-trucking-sector

Labor, climate costs loom large for trucking in 2024

WASHINGTON — While election-year politics may gridlock Congress from passing meaningful truck-related legislation in 2024, the potential for a change in administrations could be a catalyst for finalizing two regulations that have major cost and operational implications for the industry.

Proposed rules to tighten standards for independent contractors and on carbon emissions from heavy trucks — both of which are undergoing final review at the White House — also fit squarely within the...

https://www.freightwaves.com/news/labor-climate-costs-loom-large-for-trucking-in-2024

Freight agent autonomy: What does it take?

For freight agents attempting to navigate today’s volatile market, partnering with the right company can mean the difference between success and failure.

California Freight believes in letting independent brokers do what they do best: be brokers. Agents sell the freight, while California Freight handles carrier and shipper administration, as well as other necessary back-end functions. 

California Freight has worked to design an agent program that promotes both autonomy and profitability. To do...

https://www.freightwaves.com/news/freight-agent-autonomy-what-does-it-take

Teamsters celebrate NLRB decision on STG Logistics, see path to greater unionization

A dispute between the Teamsters and a company that provides multiple logistics services — which have faced off previously before the National Labor Relations Board — is being looked at by labor attorneys as a key battleground in the fight over independent contractor status and unionization.

On July 20, William Cowen, a regional director at the National Labor Relations Board (NLRB), ruled that STG Logistics workers at two California facilities are employees, not independent contractors, as the...

https://www.freightwaves.com/news/teamsters-celebrate-nlrb-decision-on-stg-logistics-see-path-to-greater-unionization

15 states jump into California’s ongoing AB5 legal battle 

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A cascade of filings in the “other” AB5 case earlier this week includes one from 15 state attorneys...

https://www.freightwaves.com/news/fifteen-states-jump-into-californias-ongoing-ab5-legal-battle

Amazon, facing suit over use of driver tips, launches driver tipping feature

Amazon this week revealed a new way for customers to thank their delivery drivers — but those drivers could be due for an apology too.

On Wednesday, Amazon (NASDAQ: AMZN) rolled out a feature that will give delivery drivers an additional $5 when a customer tells his or her Alexa device, “Alexa, thank my driver.”

Amazon — not the customer — will make the payment to the driver who delivered that customer’s most recent package. The feature will apply to the first million thank-you’s, and the five...

https://www.freightwaves.com/news/amazon-facing-suit-over-use-of-driver-tips-launches-driver-tipping-feature

Could reclassification of gig workers result in loss of jobs?

As efforts to crack down on employers misclassifying workers as independent contractors ramp up in Washington, a new research brief from a Mercatus Center at George Mason University senior research fellow is warning of unintended consequences should the current rules change.

“By narrowing the definition of what it means to be an independent contractor, state and federal authorities, such as those at the DOL (Department of Labor), are hoping that organizations will hire workers as employees...

https://www.freightwaves.com/news/could-reclassification-of-gig-workers-result-in-loss-of-jobs

Daily Infographic: Instacart to pay $46.5 million to over 300,000 workers in settlement

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https://www.freightwaves.com/news/daily-infographic-instacart-to-pay-46-5-million-to-over-300000-workers-in-settlement

Instacart to pay $46.5 million to over 300,000 workers in settlement

Instacart storefront

The same day the Biden administration introduced a proposal to reclassify independent contractors as full-time employees, gig workers earned another big victory.

On Tuesday, Instacart settled a lawsuit with the city of San Diego and agreed to pay out $46.5 million to more than 300,000 current and former workers.

Filed in 2019, the suit alleged that the workers were misclassified as independent contractors. That ultimately held weight under the law with the passage of California’s Assembly Bill 5...

https://www.freightwaves.com/news/instacart-to-pay-465-million-to-over-300000-workers-in-settlement

Biden administration revising rule on independent contractors

Driver with truck at service station

The Biden administration has unveiled a proposed rule that could raise costs for trucking companies and gig transportation, such as Uber and Lyft, that rely on independent contractors.

The 184-page proposed rule, revealed by the U.S. Department of Labor’s Wage and Hour Division (WHD) on Tuesday, reinstates guidance similar to that used under the Obama administration that is considered less favorable to classifying workers as independent contractors.

“Through our enforcement in the wage and hour...

https://www.freightwaves.com/news/biden-administration-revising-rule-on-independent-contractors

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