The city of Los Angeles has been trying to keep owner-operator trucking firms out of the Port of Los Angeles, trying to do so under the aegis of environmental safety rules. Thus, when I saw a case with an LA dateline dealing with independent contractor law in trucking, I wonder if it had anything to do with that movement.
As it turns out, state attorney general Jerry Brown, a former governor and presidential candidate in the 70s, had a righteous bust in the case in the news, where the company in question, Pacifica Trucks LLC, settled a case where they were trying to treat drivers as independent contractors when Pacifica supplied the truck and other tools.
Trucking companies can treat owner-operators as independent contractors, since they are providing a service with their own equipment. If the trucking transport company owns or leases the tractor that the driver is using, they are likely to be considered an employee, which is what Pacifica found out the hard way.
Treating drivers as independent contractor keeps firms from having to pay Social Security taxes, worker’s comp insurance and unemployment taxes, so there is always a temptation for managers and accountants to try and push the envelope and try to get some workers in as contractors. However, if they’re using your stuff to do the job, they are probably going to be treated as employees; then you’ll have to pay back taxes with penalties and interest, which won’t help the bottom line. OOs are contractors, other drivers generally aren’t.
Source: http://www.legalnewsline.com/news/225377-t…sifying-workers
Tags: freight, freight forwarders, freight moving, freight shipping, freight transport, heavy haul, moving freight, owner operator trucking, shipping freight, trucking companies, trucking services, Trucking transport