Misclassified as independent contractor rather than employee

IN the case of a IC aka 1099, it is not being able to tell the driver how to haul, there is a gray area of what to haul (based on the payment method - hourly you can, percentage you can't) and then there is how they do their job - different from how to haul. They have to keep all regulated related stuff up, but it is up to me to maintain the truck and to make sure it is safe.

Those are just a few.

Under my model, I don't tell them what loads to take unless I have a specific reason and they still can refuse it. I have to allow to route themselves, to figure out when the truck needs to be fixed (opposed to PM times) and anything to do with securement - unless it is customer specific.

The problem is too many owners tell the drivers how to do their job, which makes them employees. I fight this crap every day if I can, I want to see those owners out of business and those drivers rightfully compensated. However I also fight against the BS about 1099, it has its place, and with the right model, it works really well.

 

I'm an anti 1099 guy, partially because of my lack of knowledge on the subject. When I think of 1099, visions of white Volvos speeding through construction zones dance in my head. However, your explanation/defense of the subject is the best one I've heard/read. Kudos to you if you truly operate in this manner.

 

Makes sense when you explain it that way, thank you @Ridgeline

 

@Ridgeline : What you recommend a driver do to protect themselves? I have heard of some really owners doing some really shady #### to their drivers.

 

When you are an Independant Contractor there is a contract, often a lengthy one, that you and the company sign.
Many industries use Independent Contractors, as a Recruiter/staffing agent I am an Independant Contractor.

So while my firm can not tell me when, where or how I do my job, they have contracted with me to provide and meet certain requirements in a timely manner. If I do not meet the obligations they contracted me to do in the manner and time that was in the agreement, they can end their agreement with me.

It is the same, as when you hire and independent contractor to remodel your bathroom.. the contractor says he can get the job done in 4 days for $12,000

While you can't tell the contractor when to be there, you can tel them you do not want him there before 9 am or after 6pm.. so the contractor can show up whenever he wants between 9am and 6pm.

You are not setting a schedule for the contractor like he is an employee, you are just setting the parameters of the when he can have access to your house to remodel the bathroom, and meet the 4 day deadline. Because you do not want him showing up on the third day and work through the night to get it done on time. The 1099 form comes in at the end of then year when you want to get deductions for you taxes on the money you paid for the remodel of you home.

As a driver offering your experience and skills to a company as an Independent Contractor vs being an employere has benefits.

But, there are companies with good contracts and the are ones with bad contracts, just like there are good companies to work for and bad ones.

So, don't be closed minded the Independent Contractor opportunity. learn more about it, and go over and review the contract a company is offering.

 

There is no bright line test as to who is an employee and who is an independent contractor. Generally, if one pays the expense of operation, provides the tools of the trade, bears a risk of loss and directs how the work is performed, then he is an independent contractor. Suffice to say that how earnings are reported (W-2 v. 1099) is not a factor in determining if one is an employee or independent contractor.