U.S. Supreme Court in a 7 to 2 decision last month agreed with a federal appeals court that an age discrimination action filed by 14 FedEx drivers may proceed. The decision rested on whether the plaintiffs had complied with the regulations prohibiting lawsuits until 60 days following a filing of a “charge” to the Equal Employment Opportunity Commission. The district court had granted FedEx’s motion to be dismissed, but the U.S. Court of Appeals for the Second Circuit reversed.
Security Council of the American Trucking Associations will hold the 2008 Trucking Security & Law Enforcement Conference & Exhibition April 29-May 1 at The Westin Long Beach, Long Beach, Calif. For more information, visit http://scata.truckline.com.
ATA Litigation Center is holding its annual Forum for Motor Carrier General Counsels Aug. 10-13 at the Hyatt Regency Lake Tahoe Resort Spa & Casino, Incline Village, Nev. The program will feature lectures, demonstrations and interactive sessions, as well as a full-day symposium on highway accident litigation issues. For more information, call the Litigation Center at 703-838-1865.
Two companies settled with the California Air Resources Board for nearly $100,000 for failure to comply with state clean truck laws, the board announced. According to CARB, ValleyCrest Companies of Calabasas, which settled for nearly $65,000, neglected to properly inspect its diesel truck fleet for excess smoke emissions during 2006 and 2007; and Hartwick & Hand Inc. of Victorville, which settled for $31,125, failed to properly inspect its heavy-duty diesel trucks.
Q We are a small Midwest carrier that uses owner-operators. I read your recent articles on the classification issue. A disgruntled owner-operator we terminated filed for unemployment compensation and triggered an audit by our state. The auditor says that if we fail the state test, we will owe for back state unemployment taxes and that they share information with the federal government, exposing us to liability for back withholding, Social Security taxes, etc. Do I close my doors now?
A Obviously you need a good lawyer, and I have given you the names of several in your state. The three-part series to which you refer (CCJ October, November and December 2007) was intended to alert readers to the unsettling developments in the owner-operator status at both the federal and state level. Unfortunately, your letter and other recent developments suggest that “the winds of change” are reaching gale-force capacity.
The Government Accounting Office estimates there are 30 million “independent contractors” across all industries, and that independent contractor status is to blame for significant unreported taxes and holds in the social welfare system. (Independent contractors are not subject to the Civil Rights Act, Americans with Disabilities Act, Family Medical Leave Act, etc.)
