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Sunday, April 28, 2019

GONZALO CHIRINO V. PROUD 2 HAUL, INC., (A-0703-15T2)

The panel publishes this opinion at the Supreme Court's request. Trucking companies registered with the Federal Motor Carrier Safety Administration, subject to the Truth in Leasing regulations, 49 C.F.R. pt. 376, in conjunction with the Motor Carrier Act, 49 U.S.C. §§ 13901, 13902, 14102, and 14704, are required to have lease agreements in place with independent drivers enumerating all deductions taken from their pay. The Truth in Leasing requirements apply even if the trucking company retains a third party to manage payments to drivers and to manage delivery paperwork. The trucking company's purpose in contracting the functions to a third party was to avoid the perception it was the drivers' employer, and to maintain the drivers' status as independent contractors. The trucking company alone, however, scheduled deliveries. That the trucks were "leased," to the third party was inconsequential so long as the trucking company retained exclusive control over the shipping schedule.
The majority further found that defendant's failure to raise a new fact-sensitive argument to the trial judge, based on records not available to the trial court, precluded the issue from being considered on appeal. Judge Accurso dissented on that point.