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Independent Contractors

Independent contractors, in the form of owner-operators, are an integral part of the American trucking industry.

Status

Individuals who own motor carrier equipment or operate it under a bona fide lease and drive that equipment often choose to contract that equipment to for-hire and private motor carriers and operate independent businesses as independent contractors.

Their chosen status as independent contractors, not employees, should be honored in the enforcement of state and federal law. For example, as independent contractors, they should not be subject to mandatory coverage under state workers' compensation or unemployment tax laws. Indeed, because such individuals have selected independent contractor status, such state laws should expressly recognize this status and specifically exclude them from coverage as employees.

Additionally, as independent contractors, these individuals should not be considered leased employees for the purposes of counting them for company-provided pension, health or insurance benefits.

Any attempt to categorize independent contractors as employees or leased employees by regulatory or legislative efforts should be challenged as erosion of the independent status. Legislation and regulations should preserve the independent contractor relationship between motor carriers and those individuals who choose to operate as independent contractors, and maintain their complementary roles in the trucking industry. Government agencies should recognize that the terms and rates of compensation between motor carriers and independent contractors are matters of private contract.

The continued availability of independent contractor status under state and federal law must remain a high priority concern for the trucking industry and those segments that utilize contractors.

Amended March 1, 2008