Trucking has long been the backbone of the transportation industry, responsible for the safe and timely sale of property, operation of power, delivery of goods and products across the globe. In recent years, the demand for trucking services has only increased, with the rise of e-commerce and the need for finished product and efficient supply chain management.

Among the various commodities that are transported by trucks, bread and cake have emerged as top products, owing to their perishable nature and high demand. With this in mind, it is crucial for businesses in the baking industry to carefully consider the purchase price, selling price, power-driven equipment, period of time and transportation options available to them and choose a reliable service provider.

In this article, we will delve into the world of bread and cake transport services offered by truckers, evaluating the various aspects that businesses need to consider when selecting a trucking company.

From the importance of temperature-controlled vehicles to the reliability of security services and delivery schedules or the time of purchase, we will discuss the key factors that are essential for ensuring the safe and timely transport of these delicate products.

So, join us as we explore the intricacies of bread and cake transportation and gain valuable insights into how truckers play a vital role in keeping our favorite baked goods fresh and readily available.

A Contentious Battle

The perennial inquiry surrounding the classification of truck drivers as employees or independent contractors, which has fueled a contentious battle between California's AB5 and the U.S. Department of Labor's recent regulations on independent contractor status, took center stage this week at the U.S. Supreme Court.

The focal point of the matter did not solely revolve around the determination of a driver's employment status, but rather centered on the extent of the Federal Arbitration Act and its treatment of transportation workers, an issue that closely borders the contentious subject at hand.

On Tuesday, the court heard arguments in the case of Bissonnette et al. vs. LePage Bakeries et al., wherein Neal Bissonnette and Tyler Wojnarowski, referred to as "et al," were truck drivers who had acquired distribution rights for Flowers Foods.

The three defendants involved in the case are Flowers Foods, its subsidiary LePage Bakeries, and CK Retail Sales, a subsidiary of LePage.

Bissonnette and Wojnarowski acted as distributors for Flowers Foods, handling products such as Wonder Bread. Court documents depict them as "franchisees who entered into a 'Distribution Agreement' with CK Sales, acquiring specific distribution rights in exchange for financial consideration."

The initial lawsuit filed by Bissonnette and Wojnarowski, as stated in a document pertaining to the appeal of the lower court's ruling, centered around allegations of "unpaid or withheld wages, unpaid overtime wages, and unjust enrichment in accordance with the Fair Labor Standards Act and Connecticut wage laws."

A Key Issue: Arbitration Agreements Were Signed

The indisputable fact in this case is that Bissonnette and Wojnarowski indeed entered into arbitration agreements with Flowers. However, the crux of the argument put forth by the two individuals lies in the unenforceability of these agreements under a specific provision in the Federal Arbitration Act, which dates back to 1925. Flowers, on the other hand, contended in the lower court that arbitration should proceed based on the agreements signed by the two drivers.

This provision, often referred to as a "loophole," grants certain protections to "seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce." Over time, this definition has been expanded to include other categories of transportation workers.

Due to this loophole, workers falling within this classification have the option to bring their disputes to court, while those who have signed arbitration agreements are bound by the arbitration process to settle their conflicts.

The petition for Supreme Court review, submitted by Bissonnette and Wojnarowski's legal representatives, succinctly encapsulates the initial disagreement, which revolves around the contentious issue of defining an independent contractor.

It Could Deduct Its Own Operational Expenses

By characterizing its truck drivers as independent contractors, Flowers allegedly believed it could deduct its own operational expenses from the drivers' pay, charge them for the privilege of working for the company, and disregard payment of overtime wages — all of which, as per the plaintiffs' allegations, are unlawful.

Moreover, the plaintiffs argue that the inclusion of interstate commerce workers in the statutory language implies that they should be entitled to avail themselves of the aforementioned loophole, as at the very least, some of the goods they transported originated from outside the state of Connecticut, thereby classifying them as interstate workers.

In May 2020, the U.S. District Court for the District of Connecticut ruled in favor of Flowers and its subsidiaries. The decision, which hinged partly on the determination of worker status, concluded that Bissonnette and Wojnarowski did not qualify as employees. According to Judge Kari Dooley, the two men held responsibilities that extended far beyond their roles as truck drivers, discrediting the notion that their primary function was limited to driving. As they purchased and owned the territories encompassing their routes, their distribution efforts served as a means to generate sales and profits for their franchise businesses.

As they did not fall into the category of transportation workers — and were, in fact, not considered "workers" at all but rather owners of a business — they were consequently required to engage in arbitration for the resolution of their claims, in accordance with the Arbitration Agreement incorporated within their Distributor Agreements, as stated by Judge Dooley.

Bakery Workers, Not Truck Drivers

Flowers and its subsidiaries emerged triumphant once more in their appeal to the U.S. 2nd Circuit Court of Appeals. However, the rationale behind the verdict rendered in May 2022 diverged from that of the lower court, as the employees involved were bakery workers rather than transportation workers.

Consequently, they were unable to avail themselves of the loophole in the Federal Arbitration Act, which exclusively applies to transportation workers.

The Supreme Court, renowned for its stringent selection process, grants review to less than 2% of all petitions. Its discerning gaze often extends beyond key issues, seeking out areas of conflict among circuit court cases. (Nevertheless, this aspect does not invariably hold significance.)

Circuit Cases Still in Disagreement

The request for review submitted by Bissonnette and Wojnarowski highlights various cases that contradict the 2nd Circuit's decision in the Flowers case. Even within that decision, there was disagreement among the judges.

Judge Rosemary Pooler, who passed away in August, believed that the movement of goods through interstate commerce was integral to the plaintiffs' occupation as truckers. She would have held that they were engaged in interstate commerce and could therefore utilize the loophole.

The 2nd Circuit denied a request for a full en banc hearing, but there were dissenting opinions on that decision as well. The judges in favor of a full hearing expressly rejected the idea that an employee's industry determines whether they belong to a class of workers engaged in foreign or interstate commerce, emphasizing that it is the nature of the work performed that should be the determining factor.

In the case of Bissonnette, the key question is whether the two plaintiffs were primarily involved in transportation or the bakery business, as this will dictate their eligibility for arbitration.

One complicating factor is the Southwest Airlines vs. Saxon case. In June 2022, subsequent to the 2nd Circuit's decision, the Supreme Court ruled in favor of a ramp worker at Southwest Airlines, affirming that she was a transportation worker and could invoke the Arbitration Act. Bissonnette and Wojnarowski seek a similar determination in their own case.

An Important Aspect Relevant

Following the arguments at the Supreme Court, Scopelitis attorneys Braden Core and Prasad Shama highlighted an important aspect relevant to the trucking industry. They noted that the Court's ruling could potentially impact private motor carriers whose primary business is not transportation, such as retailers.

The attorneys also mentioned another aspect of the case that is not under consideration by the Supreme Court — whether final-mile deliveries constitute interstate commerce and trigger the exemption under the Arbitration Act.

If the case returns to the lower courts, the drivers' counsel made it clear that while this issue would be addressed, the determination of what it means to be engaged in interstate commerce is not presently before the Court.

A Reuters report on the Supreme Court proceedings indicated that the justices seemed sympathetic to the plaintiffs' arguments. Justice Samuel Alito expressed concerns about focusing on an employer's activities rather than a worker's job duties, as this could lead to confusion.

He cited Amazon as an example, questioning whether disputes in its transportation operations should be classified as transportation or retailing, and how this would affect the application of the Arbitration Act loophole.

In Conclusion

After evaluating the bread and cake transport services offered by truckers, it is evident that these professionals play a crucial role in the food industry. From their timely and efficient deliveries to their use of specialized equipment to ensure the safe transport of delicate goods, truckers are an integral part of the supply chain for bakeries and other food businesses.

It is important for businesses to carefully select and partner with reputable trucking companies to ensure the quality and freshness of their products are maintained during transport. Overall, truckers provide a valuable service that helps to keep our shelves stocked with delicious bread and cakes for all to enjoy.

If you want to stay updated with a wide range of trends, actionable insights, and innovative solutions in the trucking, freight, and logistics industry, stay connected to us.

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