Supreme Court adds New Prime Inc. v. Oliveira, No. 17-340 to docket

An important case centering around the trucking industry and its use of independent contractors is slated to be heard by the Supreme Court this term. Oral arguments were recently presented in New Prime Inc. v. Oliveira, No. 17-340, and industry experts on both sides of the aisle are concerned about the ruling’s potential implications.

The case revolves around long-haul trucker Dominic Oliveira. In 2014, he filed a lawsuit against New Prime Inc., the company for which he independently contracted. In addition to arguing the company never paid him minimum wage, Oliveira also claims that his status as an independent contractor forced him to, at times, pay out of pocket to work.

With the trucking industry facing record-breaking worker shortages, many operations are turning to independent contractors. While these types of workers are significantly cheaper than traditional employees, some businesses have participated in somewhat shady practices in order to avoid paying employees their proper wage. The outcome will depend on the court’s interpretation of the Federal Arbitration Act, a law that’s over 100 years old.

CNBC says the law exempts “contracts of employment,” but considering when the law was passed, implications are far different today. Assuming independent contractors are exempt from this law, it would have a twofold effect. On one hand, it would guarantee an increase in compensation for independent contractors, which is good news. On the other hand, it could significantly increase the cost of transportation for consumers, raising prices on everything from bread to snow shovels.

We’ll be keeping a close eye on this case as it moves through the courts. Make sure to follow our social media channels for future updates!

Source: CNBC