• ITVI.USA
    12,516.750
    -9.230
    -0.1%
  • OTRI.USA
    16.650
    0.180
    1.1%
  • OTVI.USA
    12,493.660
    -24.370
    -0.2%
  • TLT.USA
    2.630
    -0.020
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  • TSTOPVRPM.ATLPHL
    2.500
    -0.130
    -4.9%
  • TSTOPVRPM.CHIATL
    2.020
    0.110
    5.8%
  • TSTOPVRPM.DALLAX
    1.290
    0.040
    3.2%
  • TSTOPVRPM.LAXDAL
    2.330
    -0.060
    -2.5%
  • TSTOPVRPM.PHLCHI
    1.400
    0.070
    5.3%
  • TSTOPVRPM.LAXSEA
    2.800
    0.050
    1.8%
  • WAIT.USA
    103.000
    -17.000
    -14.2%
  • ITVI.USA
    12,516.750
    -9.230
    -0.1%
  • OTRI.USA
    16.650
    0.180
    1.1%
  • OTVI.USA
    12,493.660
    -24.370
    -0.2%
  • TLT.USA
    2.630
    -0.020
    -0.8%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.130
    -4.9%
  • TSTOPVRPM.CHIATL
    2.020
    0.110
    5.8%
  • TSTOPVRPM.DALLAX
    1.290
    0.040
    3.2%
  • TSTOPVRPM.LAXDAL
    2.330
    -0.060
    -2.5%
  • TSTOPVRPM.PHLCHI
    1.400
    0.070
    5.3%
  • TSTOPVRPM.LAXSEA
    2.800
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  • WAIT.USA
    103.000
    -17.000
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Driver issuesNewsTrucking Regulation

House Democrats approve ‘federal AB5’ legislation (with video)

The U.S. House of Representatives passed a bill on Thursday that effectively would nationalize the provisions within California’s AB5 law, which severely constricts the ability of companies to hire independent contractors.

The Protecting the Right to Organize (PRO) Act, introduced in Congress last year, expands the definition of “employee” and “employer” to discourage the classification of workers as independent contractors, with language that mirrors the three-pronged “ABC” test in AB5 to determine independent contractor status. An amendment attached to the bill clarifies that its ABC test “does not preempt any state laws governing the wages, work hours, workers’ compensation, or unemployment insurance of employees.”

The legislation was approved along party lines in the Democrat-controlled House. The bill has a much more difficult road in the Republican-majority U.S. Senate, however, where it is not expected to pass. “It’s a messaging bill that has no chance of passing” in the Senate, said Rep. Rodney Davis, R-Ill., in opposing the bill on the House floor.

On Jan. 1, a federal judge handed down a temporary restraining order blocking implementation of California’s AB5 against motor carriers. That order was subsequently extended two weeks later at the request of the California Trucking Association (CTA).

The CTA had argued that the Federal Aviation Administration Authorization Act of 1994, known as the F4A act, had made California’s imposition of AB5 against the trucking sector an act that illegally substituted the state’s authority for federal authority.

Larry Willis, president of the Transportation Trades Department of the AFL-CIO, testified last year that the PRO Act would open the door to union representation, which the International Brotherhood of Teamsters has been attempting to do for years within the port truck drayage sector. “We know union workers across the board do better on wages, benefits and working conditions than their nonunion counterparts, and we think that’s an important path forward for [ride-sharing company] drivers,” Willis said.

In addition to revising the National Labor Relations Act to prevent employers from classifying employees as exempt from labor law protections, the PRO Act also:

  • Expands unfair labor practices to include prohibitions against replacement of or discrimination against workers who participate in strikes
  • Makes it an unfair labor practice to require or coerce employees to attend employer meetings designed to discourage union membership
  • Permits workers to participate in collective or class action litigation
  • Allows injunctions against employers engaging in unfair labor practices involving discharge or serious economic harm to an employee
  • Expands penalties for labor law violations, including interference with the National Labor Relations Board or causing serious economic harm to an employee
  • Allows any person to bring a civil action for harm caused by labor law violations or unfair labor practices.

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John Gallagher, Washington Correspondent

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. He has covered rail, trucking and maritime issues since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable Magazine. He graduated from Florida State University majoring in English and business.

21 Comments

  1. Quote:

    “The U.S. House of Representatives passed a bill on Thursday that effectively nationalizes the provisions within California’s AB5 law which severely constricts the ability of companies to hire independent contractors.”

    The “Protecting the Right to Organize (PRO) Act,” introduced in Congress last year, expands the definition of “employee” and “employer” to discourage the classification of workers as independent contractors, with language that mirrors the three-pronged “ABC” test in AB5 to determine independent contractor status.

    An amendment attached to the bill clarifies that its ABC test “does not preempt any state laws governing the wages, work hours, workers’ compensation, or unemployment insurance of employees.”

    YEEEEEEEEEE HAAAAAAAA !!!!

    (D)rivers
    (E)volving
    (M)ovement
    (O)ffering
    (C)reative
    (R)ational)
    (A)lternatives
    (T)ogether

    TRUCK DRIVERS MUST UNITE & CREATE AN ALLIANCE !

    IMHO !

      1. If you “work for a company” then you’re not an independent contractor , you’re an employee misclassified as an independent contractor .

        Genuine O/O’s don’t “work for a company” , they work for themselves . Just like a “carrier” works for themselves . When a carrier uses an O/O as a lease on within the context of the same service and business , then that O/O is dependant , not independent and therefore misclassified as an Independent Contractor .

        You have a choice . Render yourself truly independent or restructure . But, but, but, I want my cake and eat it too . That’s as irrational as believing you’re an independent contractor while riding another’s coattail in the same business just because you own your truck . Enough with the unfair competitive advantage !

        A genuine independent O/O can’t compete fairly with a dependant leased on O/O riding the carrier’s coattail ! Just like major motor carriers who hire truck driver employees on payroll can’t compete with those who hire misclassified employees as IC’s .

        Read more on : Despite AB5 pause, California team drivers continue ‘truck-friendly’ relocation search

        IMHO

      1. Where is this “anti-driver” movement of which you speak ? LOL !

        There is no “anti-driver” movement apart from autonomous vehicle designers and manufacturers which will suppress truck driver labour , and further fatten the capitalist’s pocket whom has been picking from yours .

        AB5 is not “anti-driver”. It’s pro proper classification . It’s “anti-misclassification”, not “anti-driver” .

        IMHO

        1. Wow, union lap dog is busy in this comment section. Calm down, unions were relevant 50 years ago.
          If people prefer an independent contractor (i.e. gig economy, let them) These bills are all about government and union control of labor, not allowing you to make the best decision for ourselves.

          1. Unions are relevant and will become more so . What may change is the unification “structure ” (wink)

            Are you suggesting that the likes of the Bilderberg group is no longer relevant ? How about the American Bankers ASSOCIATION ? What about Carrier “associations” and political “parties”? Don’t be so naïve .

            Secondly , Nobody is preventing O/O’s from being O/O’s aka IC’s . What theses laws are attempting to do is remove the ambiguity in regards to proper classification , not control , but prevent and level the competitive field fairly . A genuine O/O cannot compete with a misclassified O/O that depends on a carrier . Nor can a carrier that hires driver employees on payroll compete with a carrier that misclassifies employee drivers as IC’s .

            Therefore it’s not about “preference” , it’s about what is right & wrong .

            AB5 & the ABC Test does not forbid nor eliminate a proper classified genuine O/O aka IC . It simply forbids misclassification and clearly defines what an IC is considered to be .

            Btw , I am all for UNITY . Unity would give O/O’s & truck drivers more power by eliminating the middlemen . I’m not suggesting to join a typical union . I’m suggesting to create one among yourselves through a “different” structure . There’s quite a difference between the two .

            Once again , AB5 simply defines what an IC is and what it’s not and gives you the FREEDOM to position yourselves according to the proper definition . It forbids you from doing otherwise .

            If you’re a boy and dress up in girl clothing , you’re still a boy . AB5 is making that clear . Enough with the misclassification shenanigan .

            IMHO

  2. QUOTE :

    Classes approved in lawsuit against John Christner Trucking
    February 6, 2020

    A federal judge in Oklahoma approved separate class certifications for more than 3,000 truck drivers in a misclassification lawsuit against John Christner Trucking.

    Judge Gregory Frizzell of the U.S. District Court for the Northern District of Oklahoma granted the motion for class certification on Jan. 30 for truck drivers who worked in California, as well for an Oklahoma consumer protection class.

    Allegations
    Originally filed in 2017, the lawsuit claims that plaintiff Thomas Huddleston and other truckers were employees and should have been paid as such. The original complaint alleged that truck drivers for the Sapulpa, Okla.-based company often worked 70-100 hours per week while being paid less than $500. The lawsuit also claimed that it wasn’t uncommon for drivers to receive negative paychecks.

    According to court documents, John Christner Trucking is a for-hire motor carrier that provides trucking services nationwide and relies, in part, on drivers who operate trucks leased from its company, Three Diamond Leasing.

    Huddleston claims the trucking company misclassifies him and other leasing drivers as independent contractors rather than employees, thus violating a variety of state and federal labor laws.

    Classes
    The classes consist of more than 3,000 truck drivers in the California Work Class and the Oklahoma class. The Oklahoma class, specifically, claimed that the trucking company’s marketing practices violated the Oklahoma Consumer Protection Act and the Oklahoma Business Opportunity Sales Act.

    John Christner Trucking asked the court to deny certification “because Huddleston has failed to demonstrate that California’s wage and hour laws apply to him or any other putative class member.”

    The trucking company also contended that the state labor laws in Oklahoma, not California, govern the alleged employment relationship between Huddleston and John Christner Trucking.

    The court granted class certification for:
    All current and former individuals, to the extent they performed transportation services for John Christner Trucking within California, who entered into an independent contractor operator agreement with JCT, entered into a lease agreement with either JCT or Three Diamond Leasing, and were classified as independent contractors.

    All current and former individuals who provide transportation services for John Christner Trucking within the United States, who entered into an independent contractor operator agreement with JCT and entered into a lease agreement with either JCT or Three Diamond Leasing.

    The court denied motions for certification to a “California resident class” and the portion of the Oklahoma class related to the Oklahoma Business Opportunity Sales Act claims.

      1. Wow, you said RepubliDumbs… you must have a really cogent argument defending this job killing mess of a bill.

        Or are you a Dimocrat. See… we can call you names too, and it adds nothing to the discussion.

        1. Tim AB5 won’t kill jobs . It simply restructures misclassification into proper classification . It draws a line and removes ambiguity .

          Those whom have been profiting unfairly due to the loophole are the one’s fighting it . Just like paying drivers per mile . That form of payment was created when you could drive without any time restraints . Today there are time restraints . However , those who continue to pay per mile are profiting unjustly due to production being limited due to time restraints . Therefore that form of payment is unfair .It no longer holds . Furthermore , who do you know in any other trade aside from drivers in this industry that are not paid for all their time at work ? This industry has been and still is extremely abusive . This can no longer go on nor is it acceptable .

          AB5 is nothing in comparison to what I would like to accomplish through a truck driver Alliance . It would totally restructure the industry from A to Z in favor of all driver members , and extend to other sectors and industries . Carriers ,brokers, and truck stops etc as you know them today would no longer be . That sort of structure would be history . Runs would be coordinated to perfection . Drivers wouldn’t need to work more than 8 hours per day unless they desired . Parking wouldn’t be a problem , nor time etc etc etc . This industry is built on a primitive structure . It’s only lately that a little more technology has been introduced . Believe me it’s far from being the “solution” . It’ll improve efficiency somewhat .

          Secondly , you’re absolutely right . There’s no need for name calling and disrespect due to disagreeing with one’s point of view .

          IMHO

    1. Jon you have it backwards . It’s the opposite my friend . Here’s a little enlightenment ………

      Quote in part :

      Conservatives claim to love “freedom” — but the historical record, and the evidence, suggest otherwise

      A belief in individual freedoms is supposed to be the bedrock of conservative thinking. But that’s simply not so

      conservatives and Republicans were more likely to say freedoms had been expanded too far, compared to liberals and Democrats. And on all issues except religious freedom, conservatives and Republicans were significantly more likely to say rights had been expanded too far, rather than restricted too much.

      Republicans and conservatives are consistently much more likely to think that rights have been expanded too far, while Democrats are much liberals are more likely to think they have been restricted too harshly.”

      GOOGLE IT !
      Conservatives claim to love “freedom” — but the historical record, and the evidence, suggest otherwise

      IMHO

    2. Jon , a special just for YOU !

      Trump suggests protesting should be illegal

      Quote :

      “”I don’t know why they don’t take care of a situation like that,” Trump said. “I think it’s embarrassing for the country to allow protesters. You don’t even know what side the protesters are on.”
      He added: “In the old days, we used to throw them out. Today, I guess they just keep screaming.”

      What were you saying about republicans/conservatives and ‘freedom” versus Democrats ??? LOL !

  3. Independant Truckers make more than Union Truck Drivers. They set their own days and hours to fit the needs of their families needs. They work when they want to work if they are retired or just getting older. If you are free, thank a Veteran; If you have food, thank a farmer; If you have it, drive it, live in it, sit on it, thank a trucker!

    1. If a driver has a job it’s due to labourers that fabricate , produce , and create . Nobody is above another , nobody .

      As for soldiers , they’ve been brainwashed to fight for a regime that controls them like puppets . What if soldiers on both sides decided to tell their politicians to duke it out themselves and leave the people out of it ? Then what ?

      Oh but they can’t ! Why ? Because soldiers must obey orders . They can’t question nor refuse under the threat of being insubordinate leading to incarceration . Funny that you would like us to thank vets for killing people in the name of our freedom for their puppet masters when they themselves didn’t even enjoy the freedom to say no due to not having any .Once you’re in the army you lose your freedom . You become a slave to your master and you better obey or else . You’re his pet . He even got you to wear “dog tags” . Don’t go there buddy . When you start going deep down the rabbit hole into politics you’ll realize we’ve all been played for fools and deceived . Soldiers fight to defend countries that screw us with their fiat currency for which we slave ? You call that freedom ? I call that being duped .

      Since when does going to war have rules ? Who suffers the most when wars break out ? The politicians or the innocent ? Why are soldiers told not to touch so and so’s factory , oil refinery etc etc etc ? The game is rigged ! It always has been . A regime wants to expand and impose its way . Why screw one when you can screw them all ? Enslave your people without them realizing it through propaganda . Extort them . Use that rigged piece of paper you call a medium of exchange which you control , and build an army that you’ll even use on your own if they don’t bent to your will . And you would like me to be grateful towards this sort of mentality and regime ? You can’t be serious .

      I pity you and all those who haven’t been enlightened .

      IMHO

  4. What AB5 is doing is waking you up !

    My response on :
    Despite AB5 pause, California team drivers continue ‘truck-friendly’ relocation search

    With a little addition .

    Quote:
    “It makes me angry that lawmakers put their own self-interests above the people impacted by these senseless laws.”
    ………………………………………………..
    It’s the opposite . The law makers are responding to a senseless structure that put their own interests above ethics ! Truck driver employees and government are fed up of getting fleeced by this unethical structure ! AB5 doesn’t prevent O/O’s from being independent contractors . It simply specifies what defines you as one ! Some(many)O/O’s have ridden the carrier coattail for so long that they never realized they’re misclassified as independent when they’re actually DEPENDING on the carrier . The ABC Test & AB5 are simply removing the ambiguity and clarifying this point .

    You have a choice . Render yourself truly independent or restructure . But, but, but, I want my cake and eat it too . That’s as irrational as believing you’re an independent contractor while riding another’s coattail in the same business just because you own your truck . Enough with the unfair competitive advantage !

    A genuine independent O/O can’t compete fairly with a dependant leased on O/O riding the carrier’s coattail ! Just like major motor carriers who hire truck driver employees on payroll can’t compete with those who hire misclassified employees as IC’s .
    Therefore misclassification is what actually weighs on price, route , and services . The F4A actually forbids misclassification due to having an unethical influence(unfair advantage) on price, route, and service . Carriers have a major unfair competitive advantage on price, route , and service by misclassifying . This is what is going on behind the curtain and negatively influencing price, route , and service at one’s unfair advantage. From my perspective , the ABC Test and laws like AB5 actually enforce F4A by removing the ambiguity in F4A . F4A isn’t a carte blanche to provide one with an unfair advantage over others in the same industry .

    Clearly major motor carriers are suppressing rates through their unethical misclassification tactics . How can a genuine O/O compete with them ? Major motor carriers that misclassify lease on O/O’s as independent contractors have an unfair competitive advantage which weighs on rates , route, and service . Furthermore , this rate suppression trickles down to driver employee low wages and fleecing them in the process . Another of their tactics to keep wages low is through immigration . Carriers keep on diluting the driver work force . Interestingly enough they do the exact opposite with their outstanding shares through buybacks to fill their pockets furthermore .

    Contrarily to popular opinion , I don’t aim for genuine O/O extinction . I aim to create a level playing field for all driver parties . The genuine O/O and truck drivers through an Alliance that eliminates the pick pocket middleman .

    Ask yourselves , why have most of the major carriers admitted that they can’t afford proper classification as set forth in AB5 ? And if they could , then they could afford to pay more and include benefits . Then why are rates so low ? Who’s fault is that ? Who has been crying to government to increase truck driver labour capacity ??? Where’s the driver shortage ? At the peak of a cycle ??? Are we at the peak of a cycle ? Does the peak last forever , or is it temporary ? Then what happens ?

    Who the hell is fleecing who ? You say unions ? Depends which union , LOL ! Carrier associations ? Perhaps !

    Draw your own conclusion . But before you do , dig deep into the industry . The bourgeoisie has really got you fooled and divided in their favor . Pretty soon they’ll be laughing further to the bank once they replace you with autonomous cargo vehicles .

    Truckers are a dying breed ! The camaraderie among you has died . Your wages are being suppressed by a continuous addition of cheap labour . Drivers are a dime a dozen . Who caused this and why ?

    Go read the Manifesto of the Communist Party . Be open minded and objective . Read the first chapter : I. Bourgeois and Proletarians .

    Then reflect upon what is occurring in this industry . You’re being used like a puppet , divided among yourselves, and mocked in the process .

    WAKE UP !

    IMHO !

  5. Quote :
    February 8 2020

    Lorena Gonzalez likes a good fight. She got it with hotly debated AB5

    “I believe in markets and in providing entrepreneurs the chance to succeed,” Warren wrote in a newspaper op-ed at the time. “But markets without rules and workplaces without labor protections are ripe for exploitation.”

  6. FYI >FYI >FYI !!!

    AHEM !

    Good afternoon ladies & gentlemen ,

    I would like to bring an article that was released today to your attention .

    Precisely the section referring to “Defining dependence” in regards to “Independent Contractors” .
    Without further ado ,

    Quote
    February 11 2020
    Driver Inc. consequences ‘significant’, says transportation lawyer

    Defining dependence
    ” The two Ontario Court of Appeal decisions also raise concerns about owner-operators who have their trucks working exclusively with one company, McAfee Wallace said.

    “The practical reality of the trucking industry is they can’t just take their truck and do work with other carriers,” she added. But based on case law, the long-term relationships could see these owner-operators defined as “dependent contractors”.

    Carriers should take the time to establish strong agreements that offer more than the legally required minimum termination notice, she said.

    “Avoid the independent contractor taking you to court.”
    End quote :
    Another ,

    Quote :
    “Understanding Dependent Contractors, and How to Avoid Legal Action  

    What are Dependent Contractors?
    Dependent Contractors are contractors that are economically reliant on one principal. To determine this, a court will consider whether the contractor:

    Is working predominantly for one principal.

    Is subject to the control of the principal as to how the services are provided.
    Uses his or her own tools in the provision of the services.
    Has undertaken any business risks, or expects a profit from the provision of the services.

    What Does this Mean for Employers?
    Unlike an independent contractor, a dependent contractor must be provided with reasonable notice of the termination of the contractor relationship. If notice of termination is not given, a dependent contractor can sue the principal, similar to how an employee can sue their employer.

    Regardless of how the parties choose to label the relationship, the courts will “look behind” the label that the parties use to determine the true nature of the relationship

    For example, there was a recent dependent contractor case, Khan v. All-Can Express Ltd. (2014 BCSC 1429) decided by the Supreme Court of British Columbia.

    In this case, Khan, an owner-operator of his own truck, entered into a contract to service Ace, a courier company. Khan signed a contract which stated that he was an independent contractor. The contract also stated that he was responsible for the maintenance of his truck and related expenses. He also had to hire a replacement driver when he was not available and he did not receive any employee benefits or vacation time.

    Despite the above, the court found that Khan, who had worked for Ace for five years, was a dependent contractor and awarded him four months of notice. In deciding that Khan was economically dependent on Ace, the court noted the following:
    Owner/operators, like Khan, had long term relationships with the company.

    Khan worked on a full time basis.
    Ace did not want Khan to work for competitors.
    Khan had to wear the Ace uniform and display the Ace logo on his truck.
    Khan had to follow Ace’s policies”

    You may also like to look up : Dependent Contractors – New Class of Workers Recognized in Ontario

    And , ‘Dependent’ contractor further clarified

    Dependant contractors may join an organized labour union . Quote:

    August 2014
    BREAKING NEWS: Cloud hanging over Highland Transport’s future
    “The Highland owner-ops, who are unionized Steelworkers members”

    All that just to point that out , LOL ! Are you a DEPENDANT CONTRACTOR misclassified as an independent contractor ??? Are you misleading yourself or being mislead ? Are you taking advantage of proper classification ? Or are you taking advantage of misclassification ?

    What’s your fight about ? For the right to remain misclassified ? Or for the right to be properly classified ?

    IMHO !

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