California Public Policy Invalidates Parties’ Choice-of-Law Agreement, Federal Appeals Court Holds

A Georgia choice-of-law provision in a contract entitled, “Independent Truckman’s Agreement,” between California truck drivers and a Georgia company was unenforceable based on California public policy, the federal appeals court in San Francisco has held. Ruiz v. Affinity Logistics Corp., 667 F.3d 1318 (9th Cir. 2012). The Court also ruled that California law applied in determining whether the drivers were employees or independent contractors. Vacating the lower court’s judgment in favor of a Georgia transportation company in a wage-hour class action suit, the Court remanded the case to the lower court for further proceedings to determine whether the drivers were employees or independent contractors.