Freight Firm Can't Dodge Calif. Labor Code, Court Says

Law360, New York (July 13, 2010, 7:32 PM EDT) -- A federal appeals court ruled Tuesday that trucking firm Eagle Freight Systems Inc. cannot avoid its obligations under the California Labor Code simply by stating its contracts must be interpreted in accordance with the laws of another state.

Employers may not substitute the laws of another state just to classify workers as independent contractors, the U.S. Court of Appeals for the Ninth Circuit said in reversing a summary judgment granted to Eagle.

Drivers Mohit Narayan, Hanna Rahawi and Thomas Heath brought the suit against Eagle —...
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