Will the ABC test cause over capacity?

This has nothing to do with lease purchases, it has to do with the relationship between a carrier or company and the driver who is treated as an independent contractor.


I don’t get why you guys keep going back to lease purchases, it isn’t regulated like a carrier lease is.

 

Unions hope to gather members from the fallout of this, but in fact it may have more people refusing to be part of a union.

 

I think the drivers will continue to exist, but some of them will merely get shuffled around. Some of the tweeners will see a reclassification and change in pay structure, while the rest of the tweeners will get pushed either into embracing full fledged owner op status, or into traditional fleets.

Most fleets work the spot market to some extent, even the megas. If they're seeing a sudden influx of new drivers along with a sudden spike in spot market rates, they'll likely apply those drivers to the spot market for awhile, rather than going on a contract-hunting spree.

I think that's the worst case scenario, assuming that the law's impact on the trucking industry doesn't get watered down at some point before it goes into effect.

My overall prediction: minor tightening of capacity with a minor to modest increase in driver income.

 

It's not so much the lease purchase. It how they classify the driver in the seat of a lease purchase agreement.

 

Because a lot of people don’t know there’s a difference. I run on my friend’s authority so my lettering says Operated By: and you have no idea how many times guys have spouted off about how l/p deals are bad and I’m stupid for doing one. So then I try and explain that I own my truck and trailer and run on his authority and it’s like they’re hearing about something they didn’t even know existed.

 

I have done this numerous times, but now a motor carrier. Every lease to carrier was a Equipment lease. I was employed by my own company. I do not see how this will affect those in that situation. I did not classify as a independent contractor. Self employed Yes.

 

well no, the lease purchases doesn’t seem to be a situation where the fmcsa carrier lease applies.

if I am wrong show me where they are independent contractors.

and many cdl holders don’t know how to check the oil on a truck or know how to fill out the dally vehicle log.

The cdl exams have failed to actually test new drivers, the regs and definitions should be part of them.

there are smart lease purchases and dumb ones, it seems that the advice others give are always ignored because we have built up this owner operator crap as a panacea to make the big bucks but we haven’t see less than 75% mortality rate in the owner operator/fleet owner world.

 

Think Uber and the lack of payroll taxes being paid, 55 cents a mile write off. Real easy to "make" nothing. The gig workers have more write offs, so they pay less taxes. That's the way I see it. California was losing money.

 

I don't think classifying a l/p driver as an independent contractor is incorrect. If you're paying for the truck, the fuel, insurance, etc..., and are responsible for your own p/l, then you meet every requirement to be an ic.

 

Except they do not have ownership, they are instructed when and what to do. Most have not set up a company. Your a employee as far as the IRS is concerned.