Misclassification stakes high
Sullivan likewise advised carrier representatives of several Owner-Operator Independent Drivers Association-filed cases against specific motor carriers that had implications for legal changes in Truth in Leasing regulations Part 49 C.F.R. 376.12(d) and (h), relating to compensation and charge-back items. He made several specific recommendations:
• “If you pay your carriers on a percentage basis,” he said, any computations for deductions made relating to chargeback items or any fees must be clearly stated in the lease.
• Carriers must clearly tell owner-operators in the lease “that you’re marking up an item if you’re marking it up.” The question of whether carriers needed to note the actual amount of markup or simply provide the standard chargeback rate in the lease and the amount of actual chargeback, with any fee, on the back end in a settlement was not yet settled, he added.