Saleem v. Corporate Transportation Group

Case Updates

The Second Circuit affirmed the district court’s opinion holding that the plaintiffs, for-hire drivers, are properly classified as independent contractors rather than employees under the Fair Labor Standards Act (FLSA).

The U.S. Chamber filed in a Second Circuit case concerning attempts to reclassify independent contractor arrangements as employment relationships. At issue is whether drivers for a black car service who purchased their own franchises, purchased and maintained their own vehicles, and controlled their own hours could be considered employees under the Fair Labor Standards Act (FLSA). The Department of Labor (DOL) filed an amicus brief on behalf of plaintiffs arguing that the drivers were in fact employees.

In its amicus brief, the Chamber urges the court not to accept DOL’s apparent premise that independent contractor relationships are a disfavored arrangement under the FLSA. The brief argues that independent contractor arrangements reflect a number benefits (and countervailing costs) for employers and contractors alike, and that where an independent contractor has substantial control over whether, when, and with whom to work, and can earn substantial return on a meaningful investment, courts should be exceedingly cautious before disregarding the parties’ decision to structure the relationship as an independent contractor arrangement.

Michael J. Gray and Brent D. Knight of Jones Day served as co-counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.