News
Labor Department redefines independent contractor
Indicating the independent contractor status for truck driving companies may become more difficult, as reported by Truckinginfo.com. In January 2021, Trump’s administration established a novel definition for independent contractors but thev, under the Fair Labor Standards Act, has proposed a revision of the Trump-era definition. The proposal was officially released to the Federal Register on Oct. 13 and will be open to public comment until Nov. 27.
The proposal, a 184-page document titled the Notice of Proposed Rulemaking (NPRM), is anticipated to increase the difficulty of illustrating drivers’ independent contractor status.
The existing definition centered on two factors that the NPRM is pushing back against: a worker’s chance for both profit or loss and the nature and level of control over the work. The NPRM has introduced four other factors and aims to have an equal emphasis on all six factors when defining an independent contractor. The proposal aims to adopt a wholistic view, simultaneously reversing the priorly established emphasis on practice over possibility.
These factors combined will make it challenging for companies to establish an independent contractor status in their drivers. It is not all bleak for trucking companies; however, the Department of Labor has recognized that they do not have the jurisdiction to enforce an ABC test, which is the strict independent contractor definition used in some states.
This ABC test demands that for a worker to be an independent contractor they must be, “free from the control and direction of the hiring entity in connection with the performance of work… perform work that is outside the usual course of the hiring entity’s business, and (be) customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed,” according to the Labor & Workforce Development Agency.
The second requirement is particularly hard for trucking companies and their drivers to meet, prompting the labor department to consider codifying an ABC test.
“Codifying an ABC test would establish a far simpler and clearer standard for determining whether workers are employees or independent contractors … and substantially reduce the risk of worker misclassification,” the Labor Department states in the NPRM.
The Department of Labor does not believe that it can legally adopt any iteration of an ABC test.
The proposal also explains that previously, in purview of the Supreme Court, the classification of a worker’s status was dependent on The Economic Realities Test. This test assesses if the worker is dependent on the company which they provide service to.
Additionally, the Court previously held a wholistic view of work activity in determining a worker’s status, contrary to the regulations established by an ABC test.
Greg Feary, a transportation attorney, recognizes that the Department of Labor could only rely on an ABC test if the Supreme Court readdressed its precedents or if Congress amended the Fair Labor Standards Act. Feary does not believe this will happen. He also does not believe the Supreme Court would side with such a broad interpretation like the one in the FLSA.
Continuing, the NPRM states that every instance of control should be considered when deciding a worker’s status. Feary said that this breaks from judicial precedent, and that in the past, courts held that companies requiring certain behaviors from workers, including adherence to laws, rules, and regulations, was not synonymous with control.
“But this proposed rule says, ‘no, no, no, that should be taken into consideration,’ and it should be legitimate to consider safety and customer requirements are part of the equation … And in a highly regulated industry like trucking and transportation, it’s problematic,” Feary said.
Supply Chain Turmoil Hits Drivers as Costs and Shortages Persist
“Due to the exorbitant cost of shipping, we have had to raise prices to our customers as well as order eight months’ worth of inventory, eight months in advance.” — Hanna from The Crown Choice
The anticipated recovery year turned into ongoing supply chain disruptions, with raw material shortages and factories in China operating on limited schedules. The cost of shipping containers has skyrocketed, impacting small businesses and their ability to order inventory effectively.
What This Means for Your Wallet and Your Miles
Shipping costs are at an all-time high, which could mean higher operating costs for you as a driver. If you’re hauling goods for small businesses, expect them to pass these costs along in the form of higher order rates or delayed payments.
Fuel costs are also likely to be affected as ripple effects from supply chain disruptions impact pricing. Keep an eye on fuel surcharges and budget accordingly to avoid surprises in your expense sheet.
If you’re relying on contracts with big retailers, be prepared for potential delays. Mass retailers are struggling with empty shelves, which might lead to fewer loads as they adjust to the new normal.
Load availability may shift as businesses look to diversify their supplier base. Stay flexible and ready to adjust your routes based on changing demand and supply scenarios.
How are shipping costs affecting my job?
High shipping costs are driving businesses to increase prices, which may lead to fewer shipments or altered contracts. Be prepared to adjust to these changes.
Will this affect fuel prices?
Yes, supply chain disruptions can influence fuel prices, so keep an eye on trends and potential surcharges that may affect your operating costs.
What about load availability?
Load availability could fluctuate as businesses adjust their supply chains. Flexibility in routes and contracts will be crucial to maintaining steady work.
How can I prepare for potential delays?
Keep in close contact with your logistics partners and clients. Understanding their challenges can help you anticipate delays and adjust your schedule accordingly.
Is there anything I can do to mitigate these costs?
Consider renegotiating rates and contracts to account for increased costs, and explore new markets and clients who may offer more stable opportunities.
Key Strategies for Effective Remote Worker Time Management
Remote work has become increasingly popular in recent years, thanks to technological advancements and changing attitudes towards work-life balance.
The article discusses various strategies and tools to enhance time management for remote workers. It covers setting expectations, choosing appropriate time tracking tools, and maintaining accountability to improve productivity in a remote work environment.
What This Means for Your Wallet and Your Miles
For drivers who also manage remote workers or work remotely themselves, the right time tracking tools can streamline operations and improve productivity. This could potentially reduce overhead costs and increase efficiency.
Setting clear expectations regarding availability and communication can help avoid misunderstandings and reduce downtime, ensuring you stay on top of your tasks and deadlines.
Establishing a routine can help you make the most of your work hours, allowing more time for driving or managing logistics without affecting performance.
Regularly reviewing and adjusting your time management practices can help identify inefficiencies, allowing you to make changes that enhance productivity and ensure a steady flow of income.
How can I improve time management for my remote workers?
Set clear expectations for work hours and communication, use effective time tracking tools, and establish routines to optimize productivity.
What are some recommended time tracking tools?
Popular options include Toggl, BuddyPunch, RescueTime, and Harvest, each offering different features suited to various needs.
How often should I review my time tracking practices?
Regular reviews, ideally monthly, can help identify areas for improvement and ensure your practices remain effective and aligned with goals.
Why is accountability important in remote work?
Accountability helps maintain productivity and motivation, ensuring that tasks are completed efficiently and on time.
What should I do if my current routine isn’t working?
Be flexible and willing to adjust your routine or try new tools and strategies to find a setup that maximizes productivity and fits your work style.
An Illinois-based trucker, Moath Musamih, from Orland Park, has been formally indicted in Ohio on grand theft charges for allegedly avoiding nearly $22,000 in turnpike tolls. The indictment, filed on April 21 by a Williams County grand jury, accuses Musamih of a fourth-degree felony relating to unpaid tolls, with potential penalties including up to 18 months imprisonment, a $5,000 fine, and restitution.
Prosecutors assert that Musamih’s truck was monitored with open-road tolling technology for close to two years. Despite receiving multiple payment notifications, the tolls remained unpaid. The indictment also includes a clause to confiscate the 2012 Freightliner Cascadia allegedly used in these offenses.
County Chief Investigator Andrew Skiles noted that the Ohio State Highway Patrol had been keeping tabs on Musamih for some time due to the unpaid tolls. According to Skiles, Musamih is an owner-operator whose vehicle, reportedly registered under his wife’s name, was regularly tracked traveling extensive distances on the Ohio Turnpike using an E-ZPass transponder.
An Ohio State Highway Patrol officer encountered Musamih at a service plaza on eastbound Interstate 80, where an incident report was filed for “Theft by Deception.” The report included accusations of theft without consent and engaging in corrupt activities.
Williams County Prosecutor Katherine Zartman opted for criminal proceedings against Musamih due to the significant total of approximately $21,991 in unpaid tolls over an extensive period from April 2024 to April 2026. The decision to pursue a fourth-degree felony charge was influenced by Musamih’s alleged repeated offenses and the proposed forfeiture of his semi-truck as it was deemed contraband linked to the criminal activity.
The Ohio Turnpike and Infrastructure Commission, through its advanced open-road tolling system launched in April 2024, identified Musamih. Executive Director Ferzan Ahmed emphasized the aim to maintain optimal conditions on the turnpike while highlighting the challenges posed by companies that fail to settle their toll liabilities, despite numerous reminders and collection attempts.
In a broader context, the commission recently disclosed a list of 315 trucking companies accused of evading $5.2 million in tolls over the past two years, indicating a widespread issue with rogue operators.
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