Dispatches: Industry News & Trends

Almost every truck will break down, and many trucks will require towing services. Nearly as common, such services will be followed by an unexpectedly high tow yard bill. Martin O’Conner advises that, depending on the state, tow yards may be required to disclose the total cost of their services prior to towing. For example, under Illinois’ Commercial Safety Towing Law, if all costs related to towing are not disclosed before the towing services, a tow yard cannot charge for its services and must release the vehicle for free.
Reversing the trial court, the California Court of Appeals held that Prop 22, a successful ballot initiative led by Uber, Lyft, DoorDash, and other gig companies to create an independent contractor test separate from and notwithstanding California AB 5’s ABC test, was largely constitutional and not an improper usurping of the legislative power to enact workers’ compensation laws. Prasad Sharma advises that certain provisions within Prop 22 that limit its applicability, for example, it applies to app-based drivers and network companies and delivery services within 50 miles of the pickup location, means it will not be widely available to all members of the trucking industry, but it may be an option for certain courier or local delivery segments.
Prasad Sharma reported that on March 14, President Biden nominated Julie Su, the current Deputy (and now acting) Secretary of Labor and the former Secretary of the California Labor and Workforce Development Agency, to be the Secretary of Labor. Having been narrowly confirmed to her current position by a 50-47 vote, the current nomination has been met by vigorous opposition, due in part to her championing of AB-5 and misclassification initiatives against the trucking industry. Her hearing was scheduled for April 20, but confirmation is not a sure bet as universal support from Senate Democrats (or recent Independents, i.e., Sinema) is not guaranteed.
Kevin Phillips announced the release of the updated Warehouse Terms and Conditions for 2023. The Global Cold Chain Alliance (GCCA), along with its warehouse legal partner, Scopelitis Law Firm, updated the previous version of the Terms and Conditions, which was last updated in 2013. The updated version for 2023 includes important changes that will be beneficial for all warehousing companies and their customers.
In 2021, California finalized its adoption of the Advanced Clean Trucks (ACT) Rule, which imposes obligations on truck manufacturers to increase the percentage of zero-emission truck sales relative to their overall sales within California and includes a one-time reporting requirement for motor carriers and brokers. According to Prasad Sharma and Ron Morelock, several states, along with California, signed a Memorandum of Understanding and committed to advance the sale of truck zero-emission vehicles by 2050. Approximately six states have adopted California’s ACT Rule, and others are in the process. For example, New York and New Jersey had reporting deadlines on April 1 of this year, but more states are in the process of adopting the ACT Rule.
Claims that the use of fingerprints, facial scans, or other biometric information violate Illinois’s Biometric Information Privacy Act (BIPA) have increased substantially over the past five years. According to Scopelitis Chicago Partner Andy Butcher, the upward trend will continue following the Illinois Supreme Court’s February decision in Cothron v. White Castle Systems, Inc. holding a BIPA claim accrues each time a company scans a biometric identifier or transmits such a scan to a third party. Transportation companies operating in Illinois should assess if the technology the company utilizes—such as security access systems, timeclocks, or dashcams—capture biometrics and consider the implementation of compliant BIPA policies.

Martin W. O’Connor

The Transportation Brief®

A quarterly newsletter of legal news for the clients and friends of Scopelitis, Garvin, Light, Hanson & Feary

Dispatches: Industry News & Trends

Almost every truck will break down, and many trucks will require towing services. Nearly as common, such services will be followed by an unexpectedly high tow yard bill. Martin O’Conner advises that, depending on the state, tow yards may be required to disclose the total cost of their services prior to towing. For example, under Illinois’ Commercial Safety Towing Law, if all costs related to towing are not disclosed before the towing services, a tow yard cannot charge for its services and must release the vehicle for free.
Reversing the trial court, the California Court of Appeals held that Prop 22, a successful ballot initiative led by Uber, Lyft, DoorDash, and other gig companies to create an independent contractor test separate from and notwithstanding California AB 5’s ABC test, was largely constitutional and not an improper usurping of the legislative power to enact workers’ compensation laws. Prasad Sharma advises that certain provisions within Prop 22 that limit its applicability, for example, it applies to app-based drivers and network companies and delivery services within 50 miles of the pickup location, means it will not be widely available to all members of the trucking industry, but it may be an option for certain courier or local delivery segments.
Prasad Sharma reported that on March 14, President Biden nominated Julie Su, the current Deputy (and now acting) Secretary of Labor and the former Secretary of the California Labor and Workforce Development Agency, to be the Secretary of Labor. Having been narrowly confirmed to her current position by a 50-47 vote, the current nomination has been met by vigorous opposition, due in part to her championing of AB-5 and misclassification initiatives against the trucking industry. Her hearing was scheduled for April 20, but confirmation is not a sure bet as universal support from Senate Democrats (or recent Independents, i.e., Sinema) is not guaranteed.
Kevin Phillips announced the release of the updated Warehouse Terms and Conditions for 2023. The Global Cold Chain Alliance (GCCA), along with its warehouse legal partner, Scopelitis Law Firm, updated the previous version of the Terms and Conditions, which was last updated in 2013. The updated version for 2023 includes important changes that will be beneficial for all warehousing companies and their customers.
In 2021, California finalized its adoption of the Advanced Clean Trucks (ACT) Rule, which imposes obligations on truck manufacturers to increase the percentage of zero-emission truck sales relative to their overall sales within California and includes a one-time reporting requirement for motor carriers and brokers. According to Prasad Sharma and Ron Morelock, several states, along with California, signed a Memorandum of Understanding and committed to advance the sale of truck zero-emission vehicles by 2050. Approximately six states have adopted California’s ACT Rule, and others are in the process. For example, New York and New Jersey had reporting deadlines on April 1 of this year, but more states are in the process of adopting the ACT Rule.
Claims that the use of fingerprints, facial scans, or other biometric information violate Illinois’s Biometric Information Privacy Act (BIPA) have increased substantially over the past five years. According to Scopelitis Chicago Partner Andy Butcher, the upward trend will continue following the Illinois Supreme Court’s February decision in Cothron v. White Castle Systems, Inc. holding a BIPA claim accrues each time a company scans a biometric identifier or transmits such a scan to a third party. Transportation companies operating in Illinois should assess if the technology the company utilizes—such as security access systems, timeclocks, or dashcams—capture biometrics and consider the implementation of compliant BIPA policies.

Martin W. O’Connor

Prasad Sharma

Kevin M. Phillips

Ronald J. Morelock

Andrew J. Butcher