Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/846064
commercial carrier journal | july 2017 15 JOURNAL NEWS White House rescinds memo deeming O-Os employees T he Trump administration last month rescinded a 2015 U.S. Labor Department memo that changed the interpretation of federal wage and hour laws regarding owner-operators' employment status. Rescinding the memo removes pres- sure from carriers using owner-operators and gives those drivers more assurance that they can remain independent con- tractors, said attorney Greg Feary, presi- dent at transportation law firm Scopelitis, Garvin, Light, Hanson & Feary. The July 2015 memo issued by David Weil, head of DOL's Wage and Hour Division under President Obama, indirectly instructed busi- nesses and state labor agencies to view owner-operators as employees. "That memo functionally said anyone economically dependent on a singular entity and who were exclusive to that entity is an employee," Feary said. That definition applied to owner- operators leased to carriers, as most owner-operators in that model are dependent on their carrier and operate exclusively for that carrier. The Weil memo wasn't specific to trucking, rather targeting all segments of the U.S. economy. Its application in trucking was concerning, said Feary, given the nature of the relationship between owner-operators and carriers. "If I want to be an employee truck driver, I can find that job," Feary said. "It's harder if I want to be an independent contractor running my own business. Why would I want to do that? Because I'm an entrepreneur, and I want to build a business and live in a world where the harder I work, the more money I make. "But when the government comes in and rewrites the rules to say that a guy is an employee, and the motor carrier says 'I don't even want to bring inde- pendent contractors on board,' it robs the opportunity [for owner-operators] to build a business." – James Jaillet PREMIUM BRANDS. LOCAL EXPERTS. There's no beating the ease of doing business with your trusted local truck parts distributor. As part of North America's Leading Truck Parts Network ® , your local VIPAR Heavy Duty Parts Professional offers the brands you want and the expertise you need, with the strength and resources of a network of over 620 locations throughout the U.S., Canada, Mexico, and Puerto Rico. THE RIGHT PEOPLE. THE RIGHT PARTS. THE RIGHT PLACES. FIND A VIPAR HEAVY DUTY PARTS AND SERVICE PROFESSIONAL AT VIPAR.COM VIPAR TTS Parts ad 110816.indd 1 11/8/16 5:48 PM Untitled-70 1 2/14/17 1:50 PM Rescinding the memo removes pressure from carriers using owner-operators and gives those drivers more assur- ance that they can remain indepen- dent contractors.