Page 2 - Litigation

S2 | MONDAY, JULY 14, 2014 | Litigation
| NYLJ.COM

BY ROBERT C. WHITAKER JR.
T
he misclassiication of employees as inde-
pendent contractors has been a focal
point for the New York State Department
of Labor (NYSDOL). As part of New York’s
continuing effort to target worker misclas-
siication, the state legislature has passed
new legislation that targets the commercial

trucking industry. The Commercial Goods
Transportation Industry Fair Play Act (the
act), which took effect April 10, 2014, creates
a legal standard that will make it very dificult
for the trucking industry to continue to law-
fully utilize independent contractors.

Background

To fully appreciate the impact of the act,
it is important to understand how the com-
mercial trucking industry works and the prior
status of the law. Typically, when a shipper
wants materials transported by truck, it will
negotiate a price for services with a transpor-
tation broker. The broker is usually an inde-
pendent business that does not have its own

Fair Play Act Targets
drivers and is not an authorized motor carrier.
The broker will contract with an authorized
motor carrier to actually haul the load, since
drivers are not permitted to transport goods
unless operating under the authority of an
Commercial authorized motor carrier.
The motor carrier often utilizes the services
of an owner/operator, with an independent
contractor agreement, to haul the load. The

Trucking owner/operator is typically paid a negotiated
percentage of the price received by the motor
carrier. A dispatcher, usually employed by the
motor carrier, communicates the shipper’s
instructions to the owner/operator, such as
Industry
where and when to pick up and deliver the
shipment.
There are many federal regulations that

control this relationship. For example, the
motor carrier is required to have a written
lease agreement with the owner/operator if
the load is being transported in equipment
the motor carrier does not own, which is usu-
ally the case.
Federal regulations require that the lease

K
OC
GST
ROBERT C. WHITAKER JR. is a partner in the labor and BI
employment practice at Hancock Estabrook and may
be contacted at [email protected].

Inside
Litigation

S4
Pleading Fraud S6 Top 10 Dos and Don’ts S8 Courts Limit Exposure S
S
With Particularity For Compensating For Breach of Warranties
Fact Witnesses
Kris Fischer, Editor-In-Chief
BY DAVID OWEN
BY EDUARDO J. GLAS
AND ADAM MINTZ
BY ERIC TIRSCHWELL
Angela Turturro, Sections Editor
AND THEODORE S. Michelle Grutman, Design
HERTZBERG
S

S

© 2014 ALM MEDIA PROPERTIES, LLC.
THE NEW YORK LAW JOURNAL ®
IS A REGISTERED TRADEMARK
COVER ILLUSTRATION: Bigstock
OF ALM MEDIA PROPERTIES, LLC.