The Louisiana Motor Transport Association (LMTA) has taken a significant step in advocating for the rights of independent contractors in the transportation industry. LMTA has joined a lawsuit filed by the Pelican Institute and the Liberty Justice Center on behalf of Frisards Companies, owned by LMTA Member, Cully Frisard.
Pelican Institute and the Liberty Justice Center discussed the lawsuit in an announcement on Thursday, February 8, 2024:
The lawsuit challenges the new rule issued by the U.S. Department of Labor that changes the criteria for classifying independent contractors. This change could force Frisards Co. to reclassify its independent drivers as employees, which would substantially increase operational costs and diminish the level of independence currently enjoyed by these drivers.
The lawsuit contends that the new regulation is arbitrary and surpasses the department's legal authority. Frisards argues that "the rule undermines the certainty businesses and independent contractors need to operate efficiently and is inconsistent with the Fair Labor Standards Act and precedent set by the U.S. Supreme Court and the Fifth Circuit."
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