Wednesday, February 17, 2010

Swift Class Action

The attached is a class action brought against Swift Transportation for alleged violations of the Fair Labor Standards Act.  Plaintiff’s issue seems to be Swift’s “lease-to-own” program with owner-operators which involves its affiliate leasing company.

Plaintiffs argue that under the program the owner-operator is forced to stay with Swift in a virtual employee relationship and is hounded for truck payments if he leaves or is terminated.  The Complaint totally ignores the effect of the truth-in-leasing regulations with respect to the control imposed on leased equipment under the regulations and the court decisions in van line cases approving such lease-to-own programs. See North American Van Lines, Inc. v. NLRB, 869 F.2d 596 (D.C. Cir. 1989).