The U.S. Supreme Court ruled that truck drivers can proceed with a class action lawsuit against New Prime, Inc. rather than being forced to go to arbitration. The lawsuit against New Prime claims the company failed to pay drivers the proper wages by trying to classify them as independent contractors rather than as employees. In a unanimous decision, the Supreme Court ruled that the company’s arbitration clauses are not enforceable under the federal arbitration act because the act exempts transportation workers.
The impact of this ruling is important for truckers. As workers in the transportation industry, drivers may be able to bring class action lawsuits to recover compensation and other types of damages against trucking companies, even if their contracts provide for such claims to be brought only in individual arbitration.
Cohen & Malad, LLP has obtained significant recoveries for truck drivers in class action litigation. In a recent case against Celadon, Cohen & Malad, LLP litigated for many years in four different courts to obtain a multimillion dollar judgment on behalf of drivers who were overcharged for fuel purchases.