The misclassification of employees as independent contractors has been a focal point for the New York State Department of Labor (NYSDOL). As part of New York’s continuing effort to target worker misclassification, the state legislature has passed new legislation that targets the commercial trucking industry. The Commercial Goods Transportation Industry Fair Play Act (the act), which took effect April 10, 2014, creates a legal standard that will make it very difficult for the trucking industry to continue to lawfully utilize independent contractors.
Background
To fully appreciate the impact of the act, it is important to understand how the commercial trucking industry works and the prior status of the law. Typically, when a shipper wants materials transported by truck, it will negotiate a price for services with a transportation broker. The broker is usually an independent business that does not have its own drivers and is not an authorized motor carrier. The broker will contract with an authorized motor carrier to actually haul the load, since drivers are not permitted to transport goods unless operating under the authority of an authorized motor carrier.
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