Warning all leased O/O
Discussion in 'Ask An Owner Operator' started by PoleCrusher, Jun 8, 2021.
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PoleCrusher Thanks this.
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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.
Exempt Job Categories Under California's AB5 LawTallJoe Thanks this. -
slow.rider Thanks this.
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nikmirbre, TallJoe, slow.rider and 1 other person Thank this.
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slow.rider and PoleCrusher Thank this.
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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
PoleCrusher Thanks this. -
PoleCrusher Thanks this.
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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
PoleCrusher and TheLoadOut Thank this. -
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
slow.rider, PoleCrusher and TheLoadOut Thank this.
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