Warning all leased O/O

Discussion in 'Ask An Owner Operator' started by PoleCrusher, Jun 8, 2021.

  1. PoleCrusher

    PoleCrusher Road Train Member

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    A lot of fuel haulers do as well. Just need the permits and insurance.
     
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  3. slow.rider

    slow.rider Road Train Member

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    Given that they're an east coast firm with comparatively little west coast freight, I'd likely do the same. Stand back and let the CTA pick up the tab for the legal bills. But if it was a west coast company where California is the heart of their business, they might be more inclined to put up a fight.
     
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  4. slow.rider

    slow.rider Road Train Member

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    It looks to me that Landstar BCOs do meet the overwhelming majority of the requirements to be considered ICs, and the handful of questionable ones are open to interpretation, or at the very least, likely addressable via modest restructuring.

    Nolo describes the criteria thusly:

    Under this test, the most significant factor is whether the hiring firm has control or the right to control the worker both as to the work done and the manner and means in which it is performed. In addition, the following factors are to be considered:
    • whether the worker is engaged in an occupation or business that is distinct from that of the hiring firm
    • whether the work is part of the hiring firm's regular business
    • whether the hiring firm or the worker supplies the equipment, tools, and the place for the person doing the work
    • the worker's financial investment in the equipment or materials required to perform the work
    • the skill required in the particular occupation
    • the kind of occupation—whether, in the locality, the work is usually done under the hiring firm's direction or by a specialist without supervision
    • the worker's opportunity for profit or loss depending on his or her own managerial skill
    • how long the services are to be performed
    • the degree of permanence of the working relationship
    • the payment method, whether by time or by the job, and
    • whether the parties believe they are creating an employer/employee relationship.
    No single factor in the Borello test is determinative, the first one—whether the individual's work is the service or product that is the company's primary business—is given the most weight.

    Exempt Job Categories Under California's AB5 Law
     
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  5. vangtransport

    vangtransport Heavy Load Member

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    Some industries are exempt from it, but I don't see the entire trucking industry becoming one that will become exempt.
     
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  6. PoleCrusher

    PoleCrusher Road Train Member

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    That test only applies to workers who have been exempted from the ABC test under AB5. Trucking still falls under the ABC test, meaning they would not be considered ICs under CA law.
     
  7. vangtransport

    vangtransport Heavy Load Member

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    That's the Borello test not the ABC test.
     
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  8. slow.rider

    slow.rider Road Train Member

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    Fair point. My bad.

    I'm still not entirely on board with that determination. The question of whether or not trucking is Landstar's primary business still seems open to interpretation. Landstar does not own nor drive any trucks, plus they handle a lot of freight via other means not involving trucks.

    My guess is Landstar has a stack of legal actions ready to be filed the morning after ABC becomes law over the heart of their business area. I think in CA they had to make a choice between pulling BCO's out versus joining the legal fray in the state, and they probably just chose the cheaper option. Remember, they still pull all the same CA freight as things now stand. They merely won't let BCO's who are living in the state pull it.
     
    Last edited: Jun 12, 2021
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  9. vangtransport

    vangtransport Heavy Load Member

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    Landstar is the trucking company in the eyes of the FMCSA. Look at the Dynamex case which how California got to AB5.
     
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  10. TallJoe

    TallJoe Road Train Member

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    Since it passed the House of the Representatives, it should give an indication that there are enough politicians in D.C. seeing merits in this legislation, not sharing our concerns and reservations at all.

    Where does the notion that it won't pass the Senate come from? Is it based on anything more than mere speculation? How do we know that the majority in the Senate take our side?
    Certainly, we cannot hope for the President to veto this, if it passes.
    I would like to be more confident that it will be killed in the Senate.

    Let's assume it passes.

    Can you imagine chaos with new authority applications...backlog and waiting, could be disruptive for the insurance market in conjunction with the very increase of the liability insurance minimum?
    What happens to those who already own equipment and can't get reasonable insurance quotes?
    Are they going to become employees with their own tool boxes and be paid on W-2s? How is that going to change their relationship with the carrier that they are leased on to? Is it going to affect ONLY the carrier's payroll cost side? Is someone, who is leased on, going to have more submissive obligations to their would be employers?
     
    Last edited: Jun 12, 2021
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  11. shatteredsquare

    shatteredsquare Road Train Member

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    at the megas there's just going to be a lot of business restructuring to separate tentacle 3 from tentacle 7, 1099 stuff is obviously a big shady grey area origin shepherd wants to rope in but you can't just all of a sudden "every single truck that's leased on somewhere requires your own authority and insurance, ready set go", that's ridiculous. I'm down for mandated increased responsibility at the single/small carrier level. from what I understand since 80s deregulation its opened up to any and everybody but now it's a mess. time to learn something I guess
     
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