Warning all leased O/O

Unless there is a painting crew out there that he can hire, that isn't under your Uncle's sole control, a crew that goes from painting company to painting company when needed. He calls them up with a job, they come paint, then they're off to the next job, they don't rely on him as their only source of income/work.

 

Could I get Angelo Montero number? Seems like she does not have a long education of the trucking industry? I would take the time to breakdown the 50 years before Y2K that she was conceived in.

 

Why is there this idea that it’s a single source of income that’s the issue? That’s not the case. If you own a painting business you will not be able to hire painters as independent contractors no matter if they paint for 50 other painting companies or not.

 

You can't "hire a sub contractor". You can hire a employee, or You pay a business for services rendered.

 

I Agee with most of this you sir understand the problems within the industry

 

We're in agreement on this all the way through 110%. It's self operating truckers like me who own our equipment and are proper independent contractors (as defined by the IRS) leased onto another company's authority that will get screwed by this, intentional or not.

So here's another big #### you to all of those companies out there cutting corners skirting the tax laws by paying your employee drivers on a 1099. And also the carriers pushing unprofitable (for the driver) ruinous one sided lease purchase arrangements on drivers who are force dispatched and not true contractors.

I think politicians who don't understand our industry would be in agreement that the 1099 cheaters need to be put out of business, leaving those of us who do it right alone, if someone could explain those finer details to them. Have you ever called a congressman or senator? It's pretty frustrating you get to talk to an intern and its nothing substantive. It's best to write something concise and clear in an email. But even then you normally just get a canned response back. I've never actually spoken to a US rep or senator. They seem inaccessible. Now on the state side I have but not federal.

 

Correct... But the difference us that the electrical co,tractor is licensed as its own business and licensed to perform electrical work with or without a general contractor overseeing said work.

In order for a trucking company to be on equal playing field with the Electrical company, the trucking company must have its own ooerating authority... The whole point of leasing on as an O/O with your own equipment is to not have to deal with the head ache of getting amd keeping your own Authority, as well as getting better access to contracted freight. Major shippers rarely contract freight to single truck companies because it is a huge hassle when you have 1000 loads that need shipped every day nationwide. Why hassle with contracting to hundreds of 1 and 2 Truck companies when they can just contract thier freight out to 2 or 3 larger companies that have 1000+ trucks each.

If this law ever passes and the O/O model is done away with, there will be a national shortage of trucks to haul freight... Load to truck ratio will SKYROCKET higher than anyone has ever dreamed, and rates will follow, which will ultimately be reflected in the prices shown on the super market shelves.

Those that figure a way to weather the storm will be hugely successful in the aftermath... While those that close up shop will be stuck trying to figure out how to pay the bills while the cost of living simultaniously takes a major jump.

 

That is simply semantics... How ever you word it the sub contractor was hired through a contract to do XYZ work... If XYZ work is the same type of work the general contractor (Motor Carrier in the trucking world) does, then that work could not be contracted out without violating the B portion of the ABC test.

Example: Landstar is in the business of moving frieght via truck. If one applies the ABC test to thier business model, every O/O that is currently contracted to them would have to be hired as a W-2 employee of Landstar in order for them to pass the B portion of the ABC test. Why?... Because every O/O at Landstar is ALSO in the business of moving frieght via truck... Therefor Landstar would not be able to continue to contract this work out, because it is the same type of work they do.

 

It is time for me to kick the hornets nest.
I live and work in Commie Fornia and this started hear because a company called Dynamex used 1099 drivers and lost a lawsuit and was found to have misclassified the drivers and they should have been employees.
The state codified the ruling into law with AB5 law. The California trucking association along with others oppose this and are fighting this in court I have told them at meetings they are wrong this will be good for the independent trucker and small companies also.
I am normally against all of this government regulation and I am aware that this is all promoted by the unions witch I am usually against also But in this instance I believe the problems that we all deal with and you all ##### about are brought to us because the government has failed to do it's most basic responsibility and that is to keep legal and illegal aliens from working in our country and to keep a level paying field for all of us citizens, people who were born hear and expect a reasonable standard of living compete with people from all over the world that consider eating 3 meals a day to be the American dream
while competition is great and makes us better once one company starts using 1099 employees to save money the the rest have to compete by finding cheap drivers also, If the cost goes up to everyone we will all make more money.
One of the problems we face is a never ending supply of people that want to be a truck owner without the knowage to do it successfully and a never ending supply of companies that will take advantage of them this keeps the rates down and puts us all at risk dealing with unqualified fools on the highway.
The 2 million insurance requirement is in part due to the these fools its also part of what Brough us the EDL and the 2 million requirement will be another barrier to the unqualified and will help keep rates up.
The way we have found to deal with AB5 is to incorporate witch I did 20 years ago and the trucking companies that hire us have started separate brokerages or material supply corporations that now hire our trucks really nothing has changed. AB5 does have a business to business exemption but they started these new corporations just to be sure we could continue as before, really what the government wants is everyone to be payed as an employee and you can be the only employee of your corporation, starting a corporation is way easier than running the paper work side of a trucking company basically if you want to freelance anything incorporate and you are good to go hell insurance companies have even come up with a low cost worker comp policy for the 1 man corporation.
I don't think this going to be stopped by writing your congress critter unless it comes with a promise of more money than the unions can deliver.

 

It wasn't a free country before 1861.

Depending on who you ask, of course.