Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/566087
September 2015 | Overdrive | 17 A lawsuit by trucking interests claim- ing the New York State Thruway Authority charges excessive tolls received new life last month after a federal appeals court reinstated their claims. The 2nd U.S. Circuit Court of Appeals in Manhattan said the suit brought by three trucking com- panies, the American Trucking Associations and numerous individu- al truckers can proceed. They claim the Thruway Authority violates the Commerce Clause of the U.S. Con- stitution by charging excessive tolls, which reduce truck driver income and cause higher consumer prices. Companies that were part of the suit included Wadhams Enterprises of Phelps, New York Lightning Express Delivery Service of Modena and New York Ward Transport & Logistics Corp., which has operations in New- burgh and Tonawanda. Their suit had been thrown out earlier by a Manhattan federal court judge because the state wasn't named as a party. The litigants said that up to $100 million a year – about 12 percent of tolls – is spent on the New York State Canal System. Second Circuit Judge Dennis Jacobs said the canals have "faded into obsoles- cence" and are used primarily for recreation. – David Hollis Suit against NY Thruway tolls gets green light The litigants said that up to $100 million a year – about 12 percent of New York State Thruway tolls – is spent on the New York State Canal System. Bills would levy fines for misclassifying workers Congress is considering duplicate bills, reintroduced this year, that would crack down on employers that misclassify employees as independent contractors. The Payroll Fraud Prevention Act would amend the Fair Labor Standards Act to require employers to classify workers accurately and provide employees with notice of their classification. Democrats Sen. Bob Casey of Pennsylvania and Rep. Frederica Wilson of Florida intro- duced the legislation in their respec- tive chambers July 29, which was referred to committees. Rep. Donald M. Payne Jr., who co-sponsored H.R. 3427, said mis- classified workers are denied employ- ment law protections, public benefits programs and fair compensation. The New Jersey Democrat estimated that up to 40 percent of employers in his home state misclassify workers. While the legislation does not target a specific industry, Payne noted that misclassified port truckers in New Jersey and New York average $28,000 annually. The bill would make it a FLSA violation to misclassify employees or discriminate against them for opposing their classification. It would impose fines up to $1,100 for a vio- lation of misclassification, minimum wage or overtime standards and up to $5,000 for repeat or willful violations. The measure also would extend a private right of action to misclassi- fied employees to recover wages and allow double liquidated damages for noncompliance with minimum wage or maximum hour standards. Additionally, the bill would: • Make unemployment compen- sation grants contingent on states meeting certain requirements; • Direct all divisions of the U.S. Department of Labor to report misclassification to DOL's Wage and Hour Division, which may provide this information to the Internal Reve- nue Service; and • Require that division to conduct audits of industries with frequent incidence of misclassification. H.R. 3427 has three co-sponsors, while S. 1896 has five co-sponsors. It has been introduced three times since 2011. – Jill Dunn The debate on classifying workers as employees or independent contractors has been conten- tious for the trucking industry and others.