Will the ABC test cause over capacity?

The number of trucks will in theory stay the same but will probably drop because guys won’t want to pay the high insurance cost of being a new carrier.

 

States will make a windfall with new registrations; so will insurance companies with higher premiums charged to newly registered carriers.

 

Where are people getting this from?

Just another layer of paper work, incorporate the operation and make the driver the employee.

all this does is screw everyone who wants to be an independent contractor because a few out there in the real world can’t handle the work or abide by the agreement.

 

I think it's more about government pushing for more control. Using the excuse of helping people who make poor decisions to increase government has been a proven strategy for decades.

 

But control of what?

it really has to do with taxes, they want to capture the taxes before the taxes are due.

 

Well it was that way be for 1980 deregulation.

Just a bunch of crybaby truck drivers. I hope this hammers the fleets with "fleece purchase". It will lower thier capacity. And the idiots that wanna run to DC and cry because of low rates, wanting broker transparency and regulated rates. But my God don't try and regulate employment. They have been abusing the blanket "independent contractors" for years. Its a corporate way to save piles of money.

Then I hope it straight up screws the 1099 craigslist carriers!

Besides as a owner op, you only have a lease agreement to said company. Your still employeed by yourself. I am wanting to see how this plays out.

The lease to own "owner operators" might be SOL. Thats industry that can go bye bye. Large fleets add to capacity with little financial responsibility. They are using those people as employees.

 

If anything I would think it would cause a shortage.

 

Pretty simple fix, some what like the old two check system. The O/O gets a minimum wage paycheck, the truck gets the rest. Besides the lease/purchase it also eliminates the no money O/O's

Have already done this with a couple of O/O's here. They came out with pretty good medical insurance and 401K. But they never had to look to me for any money for anything.

 

Its corp America scare tactics. You are correct, along with company match employee tax.

Most are not smart enough to know employer pays half and employee pays half. As "independent" you pay 100%.

 

The carrier is "driver leasing" and all costs are charged to the truck. Worked out well for the guys i did it for.