New Jersey's Limits On Owner-Operators Rankle Carriers
Are they trying to say that owner-operators are employees if they lease onto a carrier?
What does this mean for New Jersey?
Discussion in 'Ask An Owner Operator' started by Dino soar, Jul 27, 2019.
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Dino soar Thanks this.
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Greek and unknown lingo, to me?
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I've been following this IC thing very closely. In California the ABC test makes it very difficult to be classified as a IC, even for a true Owner Operator that owns his own truck and leases on to a carrier. It looks like NJ wants to adopt the ABC test instead of the old 20 or so questions that the IRS uses. So you could be OK for the IRS but not for NJ. The problem comes in because FMCSA tells the carrier he has to supply certain things to be able to be active and keep his MC#. Like insurance, Occupational and Liability, also ELDs. The O/O legally cant get his own insurance for primary liability that falls on the carrier, then most carriers are telling O/O what ELD to get. This videos explains it pretty good. Also pushing a O/O out the door or forcing dispatch on them. A must watch to understand from a legal point what IC means.
The first video is put together by a group of over 80 lawyers that all they do is trucking related business.
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In California, this law was put in place to protect the port drivers that were being run ragged for pennies. This has served to make it difficult, if not impossible, for a O/O to lease on with a carrier. The rules that they determine an independent contractor eliminate a O/O leasing on with a trucking company. The "B" of the ABC provisions does the damage. California is being sued to stop this but it looks like it will stand.
- A - ”The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.”
- B - ”The person performs work that is outside the usual course of the hiring entity’s business.”
- C - ”The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”
Dino soar Thanks this. -
I knew it was going to be bad as soon as I read, "Phil Murphy wants to make New Jersey the California of the east".. uuuggghh...
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Well I am thinking that this will all end up in federal court eventually and the Supreme Court will tell the states 'too bad' because fhe relationship between a carrier and an owner is regulated by the fmcsa and not the state. It is the contractual agreement that is regulated, from the financial disclosures to the escrow protection.
However the issue with contractors is a problem caused by the drivers themselves, not by the carriers. It is no excuse that a driver doesn't know the state laws and this is where the issue sits. It is the abuse that the drivers allowed and then complained about to the state, we see this many many times a week with people who take 1099 jobs and don't look into what that actually means or what protections they give up.
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