New Independent Contractor Rule - O/O

What is it??

 

New Rules on Independent Contractors Could Affect Trucking's Owner-Operator Model

Basically the government not likeing orange man era policys and trying to grab more control because reasons. This article sums it up

 

Just cost me more money to put myself on certified payroll then running as a sole prop, but I think this is just to deal with fleece purchase and the 1099 Chicago type carriers

 

Actually, it isn't a new rule, it's reversion to the old rule that existed before Orange Man changed it to protect contractors from being put out of business by government over reach. It may prove to be significant or it may not. It just depends upon how the DOL decides to apply the rule

 

I don't think it will affect O/O unless they employ drivers as part of their services.

There is a contractual obligation between the carrier and the owner that is regulated by the FMCSA and because this exists, with the owner providing both the main power unit and the means to determine what is profitable and what is not, then the DoL rule could not apply because it interferes with that contract between two parties.

What it will affect is the relationship between the owner and the driver if they are separate. This means that a possibility that those 1099 POS companies in the white Volvos will be facing more than just a backlash from the IRS overdue taxes because they would consider the driver an employee.

 

Yup

 

[QUOTE="Guest, Thought A/B 5 was over turned and didn't pass ?

 

my opinion they’re (government) being real sneaky with AB5.. there’s gotta be some bigger plan we haven’t seen yet or been offered.

just bear with me here for a second..

if they get rid of all the let’s say Chicagoland BS, even though it’s not only just Chicago it’s like in Texas, California all the states where the rates become so depressing because pretend 1099 American fleets whom really are foreigner fleets masked as American companies.. if they crush all those tax evaders and fraud foreigner fleets… where in order to really shut those fake fleets down one needs the ICC international criminal court to handle them or prevent them from opening up new carriers over and over… say we get rid of all those.. level out “actual true truck capacity and volumes” it might make rates for freight more lucrative if the marketshare goes to just all the true owner/ops or real trucking companies… if they (teamsters, brokers, government, real carriers etc) can sorta create a tried & true league of owner operators… league of company drivers with honest carriers and that’s it… because from the drivers perspective, it’s really choice for a driver to go owner/op or choice to work for an true owner/op help them build a company or choice to be a company driver. That doesn’t mean like one or the other should suffer on their choices to work every day every week every month all year whether company drivers or owner/op so to split the difference is acceptable.. everyone should be making money regardless of work classification segregation BS

on the supply demand WHEN ITS TRUE and we know all the players maybe it’s better for shippers/brokers to offer carriers/drivers better options.

tldr: in short.. get rid of the virus, provide the antidote/vaccine & pay all the real ones how they should be and nobody will have to be kept happy because they’ll just be happy to help or work is considered acceptable or rate reasonable to help all.. driver doesn’t hesitate to say sure shipper rates good happy to help I’ll run that for you safely eta is this time can be there a little early knock on the door if I’m asleep to unload if any loads outta there going this way be happy to reload outta there also and then eventually driver having a smooth week, month… only problem is partner not complaining at home.

so the solution I believe is still squeezing out all the bad companies and nonsense.

I’m sure there’s other factors to play in but I think still trying purge companies that don’t belong here and level the playing field.