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 have 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 this legislation and in recent years, owner-operators have filed lawsuits to force companies to treat them as employees, with mixed results.
In January, New York’s assembly exceeded the legislative efforts of other states when it 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 their work would represent the same service as what the company performs, according to Owner-Operator Independent Drivers Association and American Trucking Associations, which oppose the measures.
Washington state and New Jersey are considering legislation to require port drivers be employees, not owner-operators.
On Feb. 24, Washington legislators sent HB 2395 to the rules committee to consider a second reading after it cleared previous committees. The bill has 30 co-sponsors while its companion bill, SB6461, went to committee Jan. 24 with six co-sponsors.
New Jersey’s Truck Operator Independent Contractor Act, or S1470, was referred to committee Feb. 6, while its duplicate legislation, A1578 went to committee with five co-sponsors Jan 10.
