State and federal employment officials and regulators often take pains to walk a very fine line when discussing the use of contracted-for labor by companies across the country.
Larson & Gaston recently won a major transportation law defense victory on behalf of one of its motor carrier clients. Four of the carrier's owner-operators filed claims with California's Division of Labor Standards Enforcement (DLSE), claiming to be employees of the motor carrier rather than independent contractors. This is a common accusation in the ongoing wave of litigation overtaking the transportation industry. The drivers sought over $500,000 in damages and penalties. L&G, on behalf of its carrier client, petitioned to compel arbitration of the claims pursuant to the arbitration clauses appearing in the independent contractor agreements. The drivers opposed, arguing that the arbitration clauses were unenforceable because they were unconscionable and therefore their claims should be resolved at DLSE Berman hearings