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By Cecile Entleitner, Associate, Blakey & Agnew
Following the passing of Supreme Court Justice Ruth Bader Ginsburg on September 18, many have taken time to reflect upon the legacy of her service, both before and during her 27 years on the Supreme Court. The resulting vacancy has also sparked discussions regarding the potential impacts to the Court's composition and future decisions. While most news reports have focused on issues related to health care and immigration, the Supreme Court will almost certainly play a role in determining the application of laws and regulations affecting the transportation industry as well.
During her tenure on the nation's highest court, Justice Ginsburg authored majority opinions in several cases involving labor and tax regulations for Class I railroad employees. More recently, however, some of the most high-profile transportation litigation has centered around the classification (and alleged misclassification) of independent contractors in the trucking industry. In 2015, truck drivers contracted by New Prime initiated a class-action lawsuit against the carrier. Plaintiffs argued they were company drivers, and therefore employees, of New Prime but had been misclassified as independent contractors. New Prime countered that the drivers did not have the right to sue because they signed contracts with a "binding arbitration clause," which requires workplace disputes be resolved through arbitration rather than by courts. In 2019, the Supreme Court unanimously ruled that independent contractors do have the right to sue even if their contracts contain arbitration clauses. The Court did not issue a decision on the original suit's claims of driver misclassification. Parties have since agreed to a $28 million settlement, which will be divided between approximately 40,000 drivers.
Additional truck driver classification cases are likely to make their way back to the Supreme Court in the coming months and years due to ongoing litigation against new labor regulations in California. The state legislature recently passed Assembly Bill 5 (AB5) codifying a strict worker classification test, as established by the California Supreme Court in 2018, into law. Proponents argue this new standard, known as the ABC test, improves worker rights by providing increased access to minimum wage compensation, paid overtime, sick leave, unemployment and other benefits. Those opposing the legislation—including ride-sharing and food delivery companies, freelance journalists, and motor carriers—claim it essentially eliminates the independent contractor model, reduces flexibility for workers, and violates existing federal laws and regulations. Though AB5 has been in effect since January 2020, trucking companies are currently exempt from compliance pending the outcome of a legal challenge brought by the California Trucking Association. This preliminary injunction suspending enforcement of AB5 has been opposed by the State
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of California and the Teamsters union. Rulings pertaining to both the preliminary injunction and the original lawsuit challenging the implementation of AB5 are expected to be appealed to, and ultimately decided by, the U.S. Supreme Court.
The Supreme Court may also become responsible for issuing final decisions in cases related to environmental requirements and procedures for transportation projects and operations. Several lawsuits challenging federal emissions standards and infrastructure permitting regulations are currently before lower courts or in the appeals stage. One such case was filed by the Truck Trailer Manufacturers Association (TTMA) against the 2016 Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) phase 2 greenhouse gas emissions and fuel efficiency rule for medium- and heavy-duty vehicles. TTMA argued the rule should not apply to trailers as they do not have engines and EPA therefore lacks the authority to regulate trailers as motor vehicles. EPA and NHTSA subsequently requested the case be temporarily suspended while the agencies reconsidered the trailer component of the rule. Noting little progress had been made in the review process, TTMA successfully moved to lift the suspension last year so that a decision could be made prior to the rule's effective date of January 2021. The U.S. Court of Appeals for the DC Circuit recently granted trailer manufacturers a temporary exemption to phase 2 regulations, pending further action in the case. Should this exemption or an eventual final ruling by the DC Circuit Court be appealed, then the case would proceed to the Supreme Court.
On September 26, President Trump nominated Judge Amy Coney Barrett of the U.S. Court of Appeals for the Seventh Circuit to fill the Supreme Court vacancy left by Justice Ginsburg's passing. The Senate Judiciary Committee will begin its confirmation hearings on October 12. Barring any extraordinary circumstances—though always a possibility considering this year's many unforeseen events—the Senate is expected to officially confirm Judge Barrett before the November election.
Blakey & Agnew, LLC is a public affairs and
communications consulting firm based in
Washington, DC.
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