On Jan. 10, New York Governor Andrew Cuomo signed the New York Commercial Goods Transportation Industry Fair Play Act. Trucking companies in New York need to be aware of this regulation. Other states could adopt similar regulations, so it’s important for Apex Capital Clients and others in the industry to understand the parameters and its implications.
The Act presumes employee status of “commercial good transportation contractors” unless the individual qualifies as an independent contractor. The Act impacts owner-operator classification, as it creates a presumption that owner-operators who work for large trucking companies are employees, rather than independent contractors.
The Act outlines 11 conditions that differentiate independent contractors from employees. For instance, private contractors can show they work for an entity separate from the entity offering the actual work.
If a business claims that an owner-operator is not an employee, a written contract must specify independent contractor status, the owner operator needs to own his equipment, and the business must be very careful about the control exercised over the owner-operator.
The Act was prompted by a study which found that, nearly 40,000 employers misclassified more than 700,000 workers in New York, with misclassification extremely high in the trucking industry.
After passing last summer and receiving the support of the New York State Motor Truck Association and the Teamsters Union, the Act takes effect March 11.
Apex Capital clients who are concerned and need legal assistance can contact Hank Seaton with Seaton & Husk LP, at www.transportationlaw.net.
Get in touch with Apex Capital today to see how our factoring and fuel programs can help your business save money, work smarter, and grow. Call 1-855-369-APEX (2739).