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Owner-operator status challenged
Federal and state entities increasingly are questioning if owner-operators should be regarded as employees for tax purposes and reviewing legislation to restrict their classification as independent contractors. This year, federal and state
governments introduced bills to require port drivers be categorized as company employees and expanded programs cracking down on misclassifying employees as independent contractors. Labor unions support the bills, and, seeking to be treated as employees, owner-operators have filed lawsuits. In January, New York's assembly
referred companion bills to committees
that effectively would end independent contractor classification for owner-operators. The bills, A8997 and S6267, would prohibit leasing an owner- operator if his work represents the same service as the company's, say the Owner-Operator Independent Drivers Association and the American Trucking Associations, which oppose the measures. Washington state and New Jersey
are considering classifying port drivers as employees, not owner-operators. Last October, California Gov. Jerry
Brown signed SB 459, which penalizes employers who willfully misclassify workers as independent contractors.
Owner-operators, including these port truckers in Seattle, could be classified as employees under bills being considered in sev- eral states.
As the immediate past state attorney general, Brown pursued judgments over misclassification in a handful of industries, including trucking. For the third consecutive year,
Congress is considering banning owner- operators in ports with the Clean Ports Act. H.R. 572 was referred to committee with 58 co-sponsors Feb. 10, while its companion bill, S.2011, went to committee in February with five co-sponsors.
— Jill Dunn
Circle 175 on Reader Service Card or visit overdrive.hotims.com 20 OVERDRIVE APRIL 2012
