Are Truckers Self Employed?

Many California truck drivers claim that their employers have misclassified them as trucking independent contractors rather than company drivers and that this classification has prohibited them from receiving fair benefits and wages, in violation of the law.

What Is the Difference Between Employees and Self-Employed Independent Contractors?

The way that a company classifies its workers may have major consequences for the rights these workers are afforded.

While workers classified as employees are covered by minimum wage regulations and qualify for overtime pay, paid breaks, family and medical leave, paid sick leave, workers’ compensation, and unemployment insurance, truck drivers classified as independent contractors are not guaranteed to receive any of these benefits. They are also held responsible for paying their own employment taxes, as well as significant expenses.

Among the costs that independent contractor truck driving can incur are truck leasing or purchasing, fuel, fuel taxes, insurance, licensing fees, equipment maintenance, and other costs of doing business. After paying for all of these expenses and working long hours, many truck drivers are paid less than minimum wage.

How Is Job Classification Determined?

A California Supreme Court ruling may change the way that employees and independent contractors are assigned job classifications. In a 2018 court case, the court used an “ABC test” to determine whether workers are employees or independent contractors. Under this test, workers should be classified as employees if the tasks of their job are central to a company’s mission.

Additionally, according to the ABC test, a worker is a self-employed independent contractor only if all of the following are true:

• The company hiring the worker does not control or direct how the work is done.
• The worker does work that is outside of the usual kind of work done by the hiring company.
• The worker runs an independent business doing the same type of work that they are doing for the hiring company.

To complicate matters, the IRS does acknowledge what is known as a “common law employee.” This helps the IRS troubleshoot for the problem of employers attempting to misclassify employees as contractors to get out of paying them benefits.

The Balance says that a common-law employee is “someone hired by an employer, with the employer having the right to control the employee’s work.”

If a truck driver is treated as an employee and a business directs their work in a way that would direct the work of an employee and direct what or how it will be done, the contractor is effectively a common-law employee.

This issue of whether or not a trucker who is classified as a contractor would be considered a “common law employee” is crucial in the issue of auditing, The Balance notes.

Independent Contractor Misclassification

Companies sometimes misclassify employees as contractors to cut costs and not pay benefits, and in so doing, they also avoid paying taxes for the wages paid to an employee. Contractor truckers pay all of the taxes for their income, whereas an employee only pays part of their income taxes and employers pay the rest.

The Balance says that both states and the IRS consider a driver to be an employee “unless it can be proved that the worker is an independent contractor.” This means that an employer cannot simply misclassify a driver as a contractor just to get out of certain costs and taxes — the worker must truly be treated as a contractor with more freedom and independence than an employee.

What Rights Does A Self Employed Truck Driver Have?

When someone is correctly classified as a self-employed independent contractor, the person has control of when to work, how much to work, and how to complete the work. An employee, on the other hand, is under the control of an employer who can dictate the worker’s hours, deadlines, and other expectations of performing the job.

Long-haul truck drivers generally are kept to schedules and deadlines to move merchandise in a timely and on-time manner. If the trucking company controls the hours worked, load assignments, and mileage rates, the trucking company is exhibiting control over the independent contractor truck driving operator that tends to prove an employer/employee relationship.

The operative word in “independent contractor” is “independent,” because the worker who is truly in this category is not restricted by an employer’s rules and regulations.

Are Truckers Self Employed Independent Contractors or Employees?

Many truck drivers may be classified as independent contractors by their employers. However, many trucking independent contractors have argued that their job descriptions qualify them to be classified as employees and that their employers are purposefully misclassifying them in order to avoid paying out higher wages, overtime pay, and benefits.

Many trucking companies conduct business as if those who are independent contractor truck driving workers are actually employees. If the answer is “yes” to any of these questions, then the driver may be misclassified as an independent contractor:

• Does the driver perform the job in a way that is determined and directed by the trucking company?
• Does the trucking company track the driver’s location through a GPS system or other avenue?
• Does the trucking company prohibit or limit the driver’s capacity to work for other trucking companies?
• Does the trucking company prevent the driver from requesting the assistance of another worker to help with unloading the truck or other duties?

Trucker Classification Lawsuits

An Arizona class action lawsuit including almost 20,000 truckers reached a $100 million settlement in March 2019. Swift Transportation, the employer of the truck drivers, agreed to the settlement in order to settle claims from workers that they had been misclassified as independent contractors instead of company drivers. The lawsuit was initially filed almost a decade ago and included claims regarding fair wages and benefits.

If you are a self-employed truck driver and believe that your employer may have misclassified you as a self-employed independent contractor, you may be eligible to join a trucking independent contractors lawsuit investigation and seek fair compensation and benefits.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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