Louisiana Truckers Sue Department of Labor
One common trend in the trucking industry is that if there is a new regulation that will stymie the trucking industry, a lawsuit is all but certain to follow. This is what has become the case with the Louisiana Motor Transport Association (LMTA), which is suing the United States Department of Labor (DOL) for its transgressions relating to independent contractor classification.
Details
Avid readers may remember when we covered the DOL making a move in early January that would apply a six-factor test similar to the AB-5 Law in California. We predicted “The next handful of months are going to be a bumpy ride as the inevitable dispute makes its way through the system”, and it appears that became reality. Wanting to stop the new rule before it became official in March, LMAT jumped to file a lawsuit in early February, according to its posting on X.
LMTA has taken a significant step in advocating for the rights of independent contractors in the transportation industry. LMTA has joined a lawsuit filed by the Pelican Institute and the Liberty Justice Center on behalf of Frisards Companies, owned by Cully Frisard. pic.twitter.com/2RcYUcm5mo
— LA Motor Transport Assn., Inc. (@TruckinginLA) February 8, 2024
Joining in on the suit are the Pelican Institute, a Louisiana think tank, and the Liberty Justice Center, which describes itself as a public-interest litigation firm that seeks to protect economic liberty.
“The 2024 rule risks turning independent contractors into unwilling employees, threatening their freedom and livelihood. This one-size-fits-all approach undermines the essence of entrepreneurship opportunity, putting Cully’s American dream in jeopardy,” said James Baehr, special counsel at the Pelican Institute’s Center for Justice.
Conclusion
Unfortunately for the plaintiffs, the time before the regulation becomes official, March 11th, will almost certainly pass before the lawsuit is resolved. Unless the plaintiffs are able to secure an injunction similar to what happened with California AB-5, the trucking industry may have to grin and bear the requirements until the litigation goes through the system, which is likely to take a handful of months.
With this news happening around the same time that Julie Su is once again potentially being nominated to the official Secretary role for the DOL, the war for nationwide employee versus independent contractor classification has only just begun, and with the trucking industry having so many owner-operators driving under the Authority of a larger motor carrier, it is likely to fight against the regulation every step of the way.
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