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Independent Contractor Truckers Can Avoid Arbitration

May 12, 2017, 9:49 PM

A trucker can keep his Fair Labor Standards Act class action in federal court despite a mandatory arbitration clause in his contract with the trucking company.

The U.S. Court of Appeals for the First Circuit May 12 held in a case of first impression that the Federal Arbitration Act doesn’t apply to transportation workers’ contracts, even if those contracts set up an independent contractor relationship rather than an employee-employer relationship (Oliveira v. New Prime, Inc., 2017 BL 159525, 1st Cir., No. 15-2364, 5/12/17). That means courts in these situations can’t compel arbitration of a dispute, even ...

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