Some Control Is Just Fine: Ninth Circuit Upholds Independent Contractor Status in Jones v. Royal Admin. Servs.

Just the other week, in Jones v. Royal Admin. Servs., the Ninth Circuit reaffirmed the federal common law standard for distinguishing agents from independent contractors and upheld the independent contractor status of telemarketers providing direct sales services for a company, Royal Administration Services, Inc. (“Royal”).

At issue were telemarketers employed by All American Auto Protection, Inc. (“AAAP”), one of about twenty marketing vendors used by Royal to sell vehicle service contracts.  Several recipients of these telemarketing calls filed suit, first against AAAP and then against Royal, alleging violations of the Telephone Consumer Protection Act (“TCPA”).  The telemarketing call recipients alleged that Royal was vicariously liable because the AAAP telemarketers were Royal’s agents.  Royal filed for summary judgment, asserting that the AAAP telemarketers were not its agents, but rather independent contractors.  The district court granted summary judgment for Royal. READ MORE