Thursday, October 25, 2012

NJ trucking bill targets owner- operators

Back in April, we posted about big changes to the NJ Department of Labor's employment classification procedures for owner-operators.  The new procedure required owner-operators to prove to the NJDOL that the IRS had already classified them as independent contractors, in order to take an employment exemption. 

Now NJ's legislators are continuing to target the trucking industry with a bill (A-1578) that "creates a presumption that a work arrangement in the drayage trucking or parcel delivery trucking industries is an employer-employee relationship unless the party receiving the services can overcome the legal presumption of employment."  Employers found purposely misclassifying employees as independent contractors would face fines of $2,500 for the first offense, $1,000 if it was done in error.  The New Jersey Motor Truck Association fears the bill, if passed, would cause both trucking companies and owner operators to leave the state. 
The bill has already passed committee, and is on its way to a vote in the General Assembly. 
Contact information for the bill's sponsors can be found here.

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