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Motor carriers arranging for freight to be transported by independent owner-operators—i.e., independent contractors who drive their own trucks—has been ubiquitous. However, this practice is now under threat in California because of decision in California Trucking Ass’n v. Bonta,
On 30 April 2018, the California Supreme Court issued the seminal decision in Dynamex Operations West, Inc. v. Superior Court, adopting the “A-B-C Test” for determining independent contractor status in the state. The A-B-C Test, which superseded the prior, less stringent common law Borello test, 1 was later codified by the state legislature in California Assembly Bill 5 (AB-5). Under AB-5, a worker is presumed to be an employee and not an independent contractor unless the entity can establish the following three elements: (A) The person is free from the control and direction of the hiri...
A recent episode of Overdrive Radio, featuring owner-operator business services firm ATBS’ President Todd Amen’s semi-annual dissection of income and revenue averages, offered an interesting summary of the pressure on the independent contractor model. 2020 on the whole saw owner-operator income make a solid gain, cutting against the best prediction Amen thought he could make at the beginning of 2020. For this year’s dissection, Amen painted a particularly interesting picture of the numbers from last year, given what he likens to a three-to-five-year macroeconomic cycle squeezed into 1...
Today is the last day to comment on the U.S. Department of Labor's decision to withdraw a final rule regarding worker classification.
A bill making its way through the U.S. House would follow in the footsteps of California’s A.B. 5 law, passed in late 2019 and codifying a prior court decision, by severely curtailing the ability of leased owner-operators to haul freight for larger motor carriers. The Protecting the Right to Organize (PRO) Act of 2021, in addition to other broad reforms to the nation’s labor laws, would institute the so-called ABC test for determining whether a business can contract work to an independent contractor. In the case of trucking, that means a motor carrier contracting loads to a truck driver...