Owner-Operator

Washington is considering a measure that would crack down on unsavory leasing practices in the trucking industry that backers say trap truck drivers into long-term debt and prevent them from becoming profitable owner-operators.

Despite 62% of carriers reporting lower freight volume in 1Q, 33% predict freight demand to increase in the next 3-6 months. Only 19% predict freight demand to decline in the same timeframe, which represents a 12-point percentage decline vs. the 4Q survey.

The Owner-Operator Independent Drivers Association (OOIDA) is ramping up its opposition to mandate speed limiters on heavy trucks.

Earlier this week, the United States Supreme Court denied review—or Certiorari—of the Circuit’s reversal against the injunction of AB5 (Assembly Bill 5) in California, a law governing owner-operators that potentially could be very disruptive to trucking operations in the nation’s most populous state. As previously reported by LM, truck drivers are divided on AB5, which limits when workers can be contractors instead of employees. Some local port drayage operators supported the measure which would have limited owner-operators...

There is one labor issue keeping trucking executives awake at night, and it concerns the legality of using owner-operators as independent contractors in California and elsewhere. The issue is whether these owner-operators can be legally classified as independent contractors or whether they are actually employees. If it’s the latter, trucking companies would be responsible for paying much higher costs in terms of Social Security contributions, workers compensation and other labor costs.