Labor organizations have been aggressively attempting to eliminate owner-operators as independent contractors on a national level for years. Recently, union-backed bills have been introduced not only in New Jersey but also in California, Washington and New York, and a federal bill was introduced by Congressman Jerry Nadler. All of these bills create a presumption that owner-operators are employees. The New Jersey bill is particularly disturbing, however, because it provides labor organizations with the unprecedented power to file class-action lawsuits against companies the unions believe may be violating the law.
The primary intent of the bill, which was introduced earlier this year in both the New Jersey Senate (S1450) and New Jersey General Assembly (A1578) and would establish the Truck Operator Independent Contract Act (TOICA), is to create a presumption that owner-operators are employees and not independent contractors.
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