Owner-Operators vs. Swift
 

March 1, 2010
A former owner-operator (Joseph Sheer) who contracted with Swift in Fontana, California, filed a lawsuit in a New York federal court, claiming that Swift misclassifies Owner/Operators as independent contractors in violation of the federal Fair Labor Standards Act ("FLSA"), and various New York and California state laws and that such Owner/Operators should be treated as employees. The lawsuit also raises certain issues with respect to the lease agreements that certain Owner/Operators have entered into with Interstate Equipment Leasing, Inc. ("IEL"). This lawsuit is filed as a collective and class action, meaning that Plaintiff seeks to sue not only on behalf of himself but also on behalf of those Owner/Operators who contracted with Swift and who leased trucks from IEL throughout the United States and, in particular, in the states of New York and California. At present, in addition to the named Plaintiff, at least 11 other current or former Owner/Operators have decided to join this lawsuit. Plaintiff alleges, among other things, that due to the claimed misclassification of Owner/Operators, he should be considered an employee and therefore paid and treated as an employee with respect to wages and benfits.


Swift denies the claims and believes they have no merit. The services that Owner/Operators provide to Swift are invaluable, and they are a key business partner for Swift. Individuals enter into Owner/Operator agreements with Swift and equipment leases with IEL not only to obtain a vehicle, but also to purchase enhanced freedom and the opportunity to make their own independent business decisions. To enable those who lease from IEL to continue to have that autonomy, IEL intends to vigorously defend the legality of its lease agreements, and Swift intends to defend the validity of its Owner/Operator model which is used throughout the industry. Further, Swift will oppose certification of any class or collective action but, even if a class or collective action is certified, Swift will continue to defend against the claims. Finally, Swift has no reason to believe that this in any way affects your status as an Owner/Operator. If you have any questions, please contact Gary Dowell at 623-907-7366.