The U.S. Supreme Court has ruled that owner-operators who work for larger carriers cannot be forced to settle disputes through arbitration. This will allow more drivers the leverage they need to insist on decent pay, proper benefits, and equal protection under the law. It will also likely open up large carriers to class-action lawsuits from owner-operators who feel they haven’t been afforded those things.
Back in 2015, a class action lawsuit was brought against New Prime Inc. (Prime) by one of its owner-operators. The driver, Dominic Oliveira, claimed that he and his fellow owner-operators were being misclassified as independent contractors, and therefore were missing out on pay and benefits required by law for employees.
Like all of Prime’s O-Os Oliveira had signed a forced arbitration agreement, so Prime claimed that he wasn’t actually allowed to sue them at all. So, before the class action suit could be decided, a new case would need to be argued.
Basically, the lawsuit boiled down to whether or not the 1926 Federal Arbitration Act applied to independent contractors (and therefore owner-operators) or not. Because the phrase “contracts of employment” was deemed to include an independent contractor agreement, and the word “worker” was deemed to include not just employees but also independent contractors, the Supreme Court ruled unanimously that owner-operators could not be bound by forced arbitration agreements.
Forced arbitration is frequently used by large companies to prevent costly lawsuits by their workers. In worst-case scenarios, this can mean companies break the law because the potential downside of mistreating workers is an acceptable risk when compared to the definite upside of increased profits.
Now that owner-operators aren’t bound by forced arbitration agreements, they will be free to pursue lawsuits against offending carriers. And since class action suits are mostly an issue for megacarriers, those are the companies most likely to be hit with lawsuits.
The American Trucking Association told Heavy Duty Trucking that they are “disappointed” in the decision. They claim that the ruling “will make it harder for motor carriers and independent owner-operators alike to rely on agreements to resolve their disputes through arbitration.” In reality, owner-operators are still free to use arbitration for disagreements, they just can no longer be forced to do so by federal law.
Driver advocates on the other hand were encouraged by the decision. They claim that the ruling will be a good thing not only for O-Os, but also company drivers, misclassified drivers, and the transportation industry in general.
Now that this issue has been settled, Oliveira’s case against Prime can move forward.
“Today’s ruling is a huge step forward for truck drivers,” reads a statement put out by Public Justice, the law firm representing Oliveira. “This decision will enable so many drivers like Dominic who are not being paid what the law requires to go to court and fight for their rights.”
Source: truckinginfo, fleetowner, overdrive, ttnews
Luise Manuel Paganessi says
Its about time drivers are treated with respect and consideration considering all the good we do in good faith in this country. Stop the abuse. Enough is enough.
Giovanni Socci says
Yeah,you are so right,finally drivers will get treated with utmost respect.
Hey would you be interested in buying a mansion I have in Albuquerque,N.M? Prime real estate,beach front property… all for 2k dollars. send me your money and I ll send you the deed afterwards. 🤣🤣🤣🤣🤣
Andrew H says
This is a good step forward. O/Os who need to rely on larger carriers for freight volume (I can imagine it’s hard to find anything with common carriers undercutting all the suppliers), can now demand their fair share in order to feed themselves, their truck, and their families.
Jason Aho says
‘The American Trucking Association told Heavy Duty Trucking that they are “disappointed” in the decision’
If there was any doubt who the ATA work for, I think that sentence should clear up any confusion some might have.
Naim88muhammad says
Facts most people probably didn’t even catch it….ijs
Deryl D ware says
Maybe there is some type of lawsuit we can file on these brokers
Deryl D ware says
You know to be more transparent with what the companies or paying for the load at least so we can negotiate a better rate for our self
Heidi c jurey says
There is another big in human act that should be addressed by our government .carriers should not be able to strand a driver away from home ,with no money ,no way to get home or lose all they own, this includes pets and personal belongings. Unless it has to do with proven drug or alcohol used ,or any criminal act. Transportaipn of something illegal . Just like any other job .they should return these drivers back home or to the terminal .
Robert Ramey says
I was a driver for the last 20 plus years while the whole industry came down to its present sorry state! I was reduced to contractor status…while I tried to survive. Last year I was almost killed” for my efforts! I was hung out! Now I’m permanently disabled! My life is over” bad unsafe equipment…workmans comp…have broke and ended my life! Drivers are meaningless! The only thing I can say…is thank God” my driving…living in a truck days” are over.
Hammer says
Better head over towards Louisianna…That’s where I usu and lily have to head too. You ever taken the ferry across Galvaston Bay? If th you’re empty, you’re good. 60,000# is the limit. I weighed 72k one day and went…no issues. Just lied about my weight.
Rickyrobby says
So you’re a liar.
thanks for letting us know that
Scott says
You’re part of the problem with trucking.
Highway Miragr says
Now let’s wait and see what they have to say, i’m pretty sure these “big motor carriers ” are coming out with something else.
Adam Ouami says
I xontracted with a company called MMM Solutiin located in Chicago, the guy had a deal with us as team drivers and we have our iwn truck, we started taking his load after we sign a contract that we never received a copy of it, we worked the first week from september 15th and we never received a pay of that week, we worked again tak8ng team loads east coast to west coast and back for the second week and no pay, every time we asked for pay the lady keep saging send original bill og lading, i keep sending bills and made copies of them for two weeks and no pay. The last load came from california to Massachusetts was for $9k. O still have the iriginal bill of Lading for it. I sent then a copy of signed bill on the eamil tbey provided me with. Then after that load they decided not to pay and couldn’t even get fuel to make it home, i jad to put fuel out of my packed to drive to ohio. I stopped in ohio for one month waiting to get paid, the trailer was from xpo returned to them and they keep telling me i stole $50k worth of trailer, nust for them not to pay us. And safety lady keep adding things to bills i sent her, she wrote in one bill that there was 6 pallettes missing and called USPS to ask them it was delivered to Nevada to usps facility, they answered me and the said all pallettes were received.
I went to the court and many other government agencies, none of them were able to help and i tokk a lawyer and still waiting for him to do something, the lawyer is in chicago and he is still not giving me any idea about the situation.
When it comes to truck driver, this country has many crazy things going on abusing drivers and owner operator every single day and no one is doing any thing for them. These many companies in chicago area are most likely from eastern europe and majority of them are not fair when treating drivers, they try everythibg to keep drivers deposit and many other charges, some drivers just gave up, they don’t want ro fight for theur rights and that is what these companies here like. And the reason why they keep doing what they are doing because of drivers not trying to stop them.
I hope one day we as drivers and owner operator can all come together and stand to fight against this industry malfunctioning. I already know many of you will read this and they are thinking about what happened to them. Do something make change and let’s all get together to fight those monsters in Chicago( the best place for industie to make money and the worst place for drivers to stay).
Luis R. says
guess what ? I don’t feel sorry for you!!!
I understand that this business is not for everyone, but if you cant grow a pair and do your own business. be 100% independent O/O . look for your own loads, dispatch and drive yourself, then stay away from this line of work. you guys who are leasing, or “o/o” only because the big companies give you that title, are screwing up this industry. you guys are making this mega carries stronger !!!! don’t you get it!!!! as a real O/O you can haul a load that suits your needs, go anywhere you want, stop and go anytime , refuse to haul a load and you will not get punished by your dispatch …… being a 100% O/O is freedom !! learn to be disciplined and make decisions.
Buck says
STOP STOP quit being a money losing o/o and join a company. That is what your doing anyway. That way we can pinch the company’s and get fair pay. No more cheap freight hauling and brokers out of business
Todd says
Working over the road as a company driver isn’t worth it period. If you want to work over the road the only way to go is owner opp. Getting paid 50 cents a mile isn’t worth being away from home all the time. I run 2.50 mile most trips. Lowest I run is 1.80 mile.
Todd says
Nice to see who the ATA is working for. Any truck driver who supports these guys should be ashamed of themselves.
Trish says
It means nothing. More and more illegals are on the roads ,companies love them , 3 in every truck and they never have to stop. The feds have taken the industry over and you should be able to see they don’t give a hoot about anyone.
Luis R. says
stop whining and take responsibility for what you are doing !!!!
Giovanni Socci says
Yeah,you are so right,finally drivers will get treated with utmost respect.
Hey would you be interested in buying a mansion I have in Albuquerque,N.M? Prime real estate,beach front property… all for 2k dollars. send me your money and I ll send you the deed afterwards. 🤣🤣🤣🤣🤣