Pennsylvania Supreme Court Invalidates No-Hire Provision in Service Contract

The Supreme Court of Pennsylvania recently held unenforceable a no-hire provision in a service contract between a logistics company and a trucking firm. In Pittsburgh Logistics Systems, Inc. v. Beemac Trucking LLC, et. al., the court reasoned that the no-hire provision at issue was overly broad and undermined fair competition for employees in the shipping and logistics industry.

Ninth Circuit Upholds Federal Preemption of California’s Meal and Rest Break Laws for Interstate Commercial Drivers

In one of the year’s most anticipated court decisions for the trucking industry, International Brotherhood of Teamsters, Local 2785, et al. v. Federal Motor Carrier Safety Administration, No. 19-70413 (January 15, 2021), the U.S. Court of Appeals for the Ninth Circuit upheld a Federal Motor Carrier Safety Administration (FMCSA) ruling that federal rest break regulations preempted California’s meal and rest break rules, as applied to drivers of property-carrying commercial motor vehicles.

Making Sense of Colorado’s New Wage and Hour and Paid Sick Leave Rulemaking

Back in January, management-side labor and employment lawyers in Colorado thought the biggest wage and hour compliance issue for 2020 would be limited to ensuring clients were up to date on the expanded meal and rest break requirements of the Colorado Overtime and Minimum Pay Standards Order #36 (COMPS #36). What has transpired in the months since then has been truly dizzying: a barrage of legal and regulatory developments ranging from drastically overhauled COMPS exemptions to an entirely new paid sick leave requirement. Considering the pace at which these changes have progressed, it is possible that by the time this article is published, new rulemaking or guidance will have taken us in a different direction, but the following are some of the most important wage compliance issues to consider for Colorado employers as the new year looms.

First Circuit Holds FAA Does Not Drive Independent Contractors’ Class Action Wage Claims Case

Recently, and for the first time in more than 20 years, the United States Court of Appeals for the First Circuit ruled on the transportation worker exemption contained in Section 1 of the Federal Arbitration Act (FAA). In Waithaka v. Amazon.com, Inc., 966 F.3d 10 (1st Cir. 2020), the court of appeals upheld a district court’s decision not to compel Amazon “AmFlex” delivery drivers (who are independent contractors) to arbitrate their wage claims. The decision is significant for companies that require their delivery drivers to sign arbitration agreements.

DOL Provides Insight Into the FLSA’s ‘Retail or Service Establishment’ Exemption, Opening the Door for Broader Application

On August 31, 2020, the Wage and Hour Division of the U.S. Department of Labor (DOL) issued four opinion letters, one of which, Opinion Letter FLSA2020-11, addressed whether certain employees in the oilfield services industry were exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). The specific question answered by the DOL in FLSA2020-11 involved truck drivers of an oilfield waste-removal company and the “retail or service establishment” overtime exemption of the FLSA (29 U.S.C. § 207(i), better known as the “Section 7(i) exemption”).

San Francisco Issues Guidance on COVID-19 ‘Temporary Right to Reemployment’ Ordinance

On August 7, 2020, the San Francisco Office of Economic and Workforce Development (OEWD) published guidance regarding the City of San Francisco’s “Temporary Right to Reemployment Following Layoff Due to COVID-19 Pandemic Emergency Ordinance.” Also known as the “Back to Work” emergency ordinance, the ordinance took effect on July 3, 2020, requiring San Francisco employers with 100 or more employees to offer reemployment to eligible employees laid off because of the COVID-19 pandemic when the employers rehire for the same or similar job classifications.

New Jersey Supreme Court Confirms Enforceability of Employment Arbitration Agreements With Class Action Waivers Exempted Under FAA

On May 21, 2018, in Epic Systems Corporation v. Lewis, the Supreme Court of the United States upheld class action waivers in arbitration agreements, ruling that the Federal Arbitration Act (FAA) instructs “federal courts to enforce arbitration agreements according to their terms—including terms providing for individualized proceedings.” On July 14, 2020, the Supreme Court of New Jersey handed down a landmark decision of its own upholding the enforceability of employment arbitration agreements with class action waivers under the New Jersey Arbitration Act (NJAA), even if the agreements are exempted from the coverage of the FAA, by virtue of the FAA’s Section 1 “transportation worker exemption.”

Cal/OSHA Issues Guidance for Logistics and Warehousing Facilities

On May 7, 2020, the California Division of Occupational Safety and Health (DOSH), better known as Cal/OSHA, issued its COVID-19 Industry Guidance: Logistics and Warehousing Facilities, which provides detailed guidance to logistics and warehouse facilities on how to support a safe and clean work environment for workers in order to avoid the outbreak and transmittal of COVID-19 in the workplace.

FMCSA Offers Flexible Solutions for Drug and Alcohol Testing During COVID-19 Outbreak

The COVID-19 pandemic is interrupting, and in many cases, preventing compliance with the Department of Transportation’s (DOT) drug and alcohol testing regulations. On March 23, 2020, DOT published guidance on compliance with DOT drug and alcohol regulations that clarified some existing legal requirements but offered little in the way of practical solutions. On March 25, 2020, however, the Federal Motor Carrier Safety Administration (FMCSA) published clear, flexible guidance specific to FMCSA’s testing requirements to aid FMCSA-regulated employers unable to comply with FMCSA’s testing requirements due to COVID-19.

Department of Transportation Issues Notice on Use of CBD Products by Safety-Sensitive Employees

The Department of Transportation’s (DOT) recent notice on the use of cannabidiol (CBD) products serves as a warning to employees in DOT-defined safety-sensitive positions. While the DOT has always had clear regulations strictly prohibiting the use of marijuana for truck drivers, school bus drivers, train engineers, pilots, transit vehicle operators, and the like, the increasingly widespread use of CBD products created a gray area with regard to testing.

California’s AB 5 Enjoined as to Motor Carriers; Federal Court Enters Preliminary Injunction on FAAAA Preemption Claim

On January 16, 2020, the U.S. District Court for the Southern District of California entered an order granting a preliminary injunction requested by the California Trucking Association (CTA), which was represented by Ogletree Deakins shareholders Robert R. Roginson, Alexander M. Chemers, and Spencer C. Skeen, in a matter challenging Assembly Bill (AB) 5 as to motor carriers operating in California.