Post by yarddog on May 21, 2013 6:22:59 GMT -5
NJ Assembly Clears Bill To Stop Trucker Misclassification
Share us on: Twitter Facebook LinkedIn By Martin Bricketto
Law360, New York may 20th,2013
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The New Jersey Assembly on Monday passed controversial legislation that supporters say would crack down on companies that duck taxes and employee benefit obligations by mislabeling port and parcel delivery truck drivers as contractors.
Cleared in a 43-30 vote with five abstentions, the union-backed Truck Operator Independent Contractor Act would establish a presumption that port and parcel delivery truck drivers are employees unless companies can prove otherwise.
The misclassification of such truckers is a widespread problem and allows unscrupulous employers to avoid Social Security, Medicare and unemployment contributions as well as overtime, minimum wage and other benefit requirements, proponents claim. Current law is unfair to employees and employers who play by the rules, according to Assemblyman John Wisniewski, D-Middlesex, a primary sponsor of the legislation.
“The misclassification of employees improperly deprives employees of protections provided under state and federal law and creates an uneven playing field for law-abiding companies that currently operate under a competitive disadvantage compared to their industry peers who misclassify,” Wisniewski said in a statement. “This bill will address the inequities that exist under the current system.”
The bill, A1578, has sparked opposition from FedEx and the New Jersey Motor Truck Association, which claim that it unfairly targets independent contractors who have chosen to go into business for themselves and will disrupt the state's economy by upending the use of such owner operators in the drayage and parcel delivery industries. Drayage trucking involves the short-distance transportation of goods.
An NJMTA representative did not immediately return a request for comment on Monday.
The bill includes stiff criminal and administrative penalties for businesses that misclassify truckers and would allow drivers who think they've been misclassified to sue for damages. Additionally, labor organizations could bring class actions on behalf of workers over alleged violations.
To overcome the bill's presumption of an employer-employee relationship, motor carriers would have to show that truckers are free from their control when it comes to the services they perform, that the services are outside the usual course of business, and the workers are “customarily engaged in an independently established trade, occupation, profession or business.”
The legislation was previously slated for an April 29 vote, but supporters couldn't muster the necessary votes, opponents had said.
The state Senate Labor Committee in March cleared similar legislation, S1450, though no further action has been taken on the bill so far. Even if the bill makes it out of the Democratic-controlled state legislature, it would still have to go through Gov. Chris Christie, a Republican.
Fred Potter, a vice president and Port Division director with International Brotherhood of Teamsters, welcomed the vote and hoped for similar success going forward.
“Hopefully the governor will realize this is a necessary bill, that working people need this kind of protection. Hopefully he'll see the revenue potential for the state and the fact that legitimate employers can compete on a level playing field, and he won't veto it,” Potter said Monday.
Share us on: Twitter Facebook LinkedIn By Martin Bricketto
Law360, New York may 20th,2013
--
The New Jersey Assembly on Monday passed controversial legislation that supporters say would crack down on companies that duck taxes and employee benefit obligations by mislabeling port and parcel delivery truck drivers as contractors.
Cleared in a 43-30 vote with five abstentions, the union-backed Truck Operator Independent Contractor Act would establish a presumption that port and parcel delivery truck drivers are employees unless companies can prove otherwise.
The misclassification of such truckers is a widespread problem and allows unscrupulous employers to avoid Social Security, Medicare and unemployment contributions as well as overtime, minimum wage and other benefit requirements, proponents claim. Current law is unfair to employees and employers who play by the rules, according to Assemblyman John Wisniewski, D-Middlesex, a primary sponsor of the legislation.
“The misclassification of employees improperly deprives employees of protections provided under state and federal law and creates an uneven playing field for law-abiding companies that currently operate under a competitive disadvantage compared to their industry peers who misclassify,” Wisniewski said in a statement. “This bill will address the inequities that exist under the current system.”
The bill, A1578, has sparked opposition from FedEx and the New Jersey Motor Truck Association, which claim that it unfairly targets independent contractors who have chosen to go into business for themselves and will disrupt the state's economy by upending the use of such owner operators in the drayage and parcel delivery industries. Drayage trucking involves the short-distance transportation of goods.
An NJMTA representative did not immediately return a request for comment on Monday.
The bill includes stiff criminal and administrative penalties for businesses that misclassify truckers and would allow drivers who think they've been misclassified to sue for damages. Additionally, labor organizations could bring class actions on behalf of workers over alleged violations.
To overcome the bill's presumption of an employer-employee relationship, motor carriers would have to show that truckers are free from their control when it comes to the services they perform, that the services are outside the usual course of business, and the workers are “customarily engaged in an independently established trade, occupation, profession or business.”
The legislation was previously slated for an April 29 vote, but supporters couldn't muster the necessary votes, opponents had said.
The state Senate Labor Committee in March cleared similar legislation, S1450, though no further action has been taken on the bill so far. Even if the bill makes it out of the Democratic-controlled state legislature, it would still have to go through Gov. Chris Christie, a Republican.
Fred Potter, a vice president and Port Division director with International Brotherhood of Teamsters, welcomed the vote and hoped for similar success going forward.
“Hopefully the governor will realize this is a necessary bill, that working people need this kind of protection. Hopefully he'll see the revenue potential for the state and the fact that legitimate employers can compete on a level playing field, and he won't veto it,” Potter said Monday.
