Tag: Trucking Regulations

Trucker Work Environment & Sustainability Initiatives for 2022 (Part 1)

Bob Holtzman

Trucker work environment and sustainability initiatives are on the table, and the industry is adapting in 2022. Many industries have faced pressure to improve sustainability, reduce carbon emissions, and adopt eco-friendly practices in the last few decades. Likewise, the trucking industry is no exception, and there’s been increased scrutiny directed toward its role in climate change. Indeed, according to the Environmental Protection Agency, the freight industry majorly contributes to issues such as smog, reduced air quality, and pollution.

Trucker Work Environment & Sustainability Initiatives for 2022

It has led many trucking companies to promote sustainability within their company culture. Likewise, a healthy work environment and better environmental practices go hand in hand. The trucker work environment and sustainability initiatives for 2022 will set the precedent for how the industry conducts business going forward.

Improving Work Conditions for Truckers

What are the first steps toward setting beneficial trucker work environment and sustainability initiatives? Let’s start with sustainability and what that entails. Sustainability isn’t just about the environment. Additionally, it’s about truckers, too, and their ability to drive safely. Many trucking companies have realized that efforts to improve environmental impact are more successful when drivers enjoy better working conditions. Thus, it’s no surprise that employers are pouring effort into this endeavor. It includes initiatives to improve driving conditions and offer truckers the resources to succeed.

The link between sustainability and working conditions has become clear in recent years as truckers who enjoy better pay and benefits are typically healthier and more invested in their jobs. It, in turn, motivates drivers to engage with initiatives to improve their companies’ sustainability and work to mitigate environmental impact.

There are many ways that trucking companies can improve the working conditions experienced by drivers. In addition to offering competitive compensation packages, freight providers have launched initiatives such as the following:

  • Better routes with shorter daily hours
  • Mandated rest to prevent fatigue
  • On-demand healthcare services
  • Mental health care and counseling

These improvements can go a long way in establishing a supportive culture that serves as the foundation of sustainability efforts. With a fleet of happier and healthier truckers, companies can begin making strides toward environmentally-conscious practices with the full support of drivers to ensure these efforts take root. In addition to implementing sustainable practices, trucking companies should invest in truck insurance. A comprehensive truck insurance policy can shield a company from many of the common liabilities in the trucking industry.

Cultivating a Culture of Sustainability

With the foundation provided by a positive work environment, trucking companies can build sustainable practices that reduce environmental impact and improve business outcomes. Cultivating a culture that values the environment and seeks out innovation is key to minimizing the effects of air pollution from the trucking industry. Achieving a major cultural shift isn’t a simple task, and it requires cooperation from every sector of a trucking company.

Sustainability initiatives should start with assessing the most harmful practices to the environment. One of the most troublesome tasks negatively impacting sustainability is so-called “deadheading,” Truckers drive an empty trailer between destinations after unloading cargo. This practice was previously a common solution when no additional cargo was available at the time of delivery, but its dangers have become apparent. In addition to the unnecessary expenditure of fuel and emission of air pollutants, this practice poses a considerable risk if a collision were to occur. An empty trailer increases the likelihood of fuel spillage, which can create a massive environmental cleanup crisis.

Trucking companies can move towards a culture of sustainability by eliminating practices like “deadheading” and improving overall operational efficiency. It isn’t just beneficial to the environment — it’s advantageous to a trucking company’s bottom line. Inefficient practices often harm the environment and cause fiscal waste, but implementing sustainable strategies can mitigate the problem.

Investing in Eco-Friendly Technology

The need for sustainable policies in the trucking industry is clear, but what do those policies look like in practice? In addition to eliminating inefficient operational standards, trucking companies can invest in eco-friendly innovations that can radically improve the industry’s overall sustainability. Luckily, there are many of these innovations on the horizon, offering hope that truckers will minimize the environmental impact of their work.

One such innovation, automatic start-stop functions that reduce idle time, allows truckers to put fuel conservation on autopilot. This tool works by keeping the engine warm and batteries charged while the motor seems off. It massively cuts down on unnecessary fuel costs and minimizes the release of air pollutants produced by idling. This technology is becoming increasingly popular throughout the trucking industry, and if it becomes widespread, it could reduce air pollution substantially.

Technology to improve aerodynamic drag is another promising innovation that may make trucking more sustainable. Some of the accessories that can achieve this include the following:

  • Bug deflectors
  • Varying tire sizing
  • Cargo nets
  • Tonneau covers
  • Non-standard bumpers
  • Raised tailgates

Improving aerodynamic performance can improve fuel efficiency, which can minimize air pollution. It can also shorten the drive time to your destination.

Building Better Practices for Truckers

Trucking is a difficult job, but many strategies can make it easier and better for the environment. It all starts with ensuring that drivers have access to the tools they need to be healthy. Trucking companies can achieve this by improving the work conditions of their drivers and implementing sustainable technology to mitigate environmental impact. When used in tandem, these initiatives can revolutionize the trucking industry and reduce air pollution in the process.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

Caltrans Freight Mobility Plan Trucking Initiatives

Bob Holtzman

Caltrans, California’s Department of Transportation, recently released its Freight Mobility Plan detailing it’s short- and long-term policies, strategies, and investments. The main focus of the Freight Mobility Plan points to the trucking industry, including parking, truck-only lanes, tolling, and the rise of autonomous trucking.

The trucking industry fuels the state’s economy and is in the middle of a five-percent economic growth. Even with COVID-19 spreading throughout the United States this spring before heavily impacting California this summer in the pandemic’s second wave, the California trucking industry has been operating an increased capacity. If anything, truck drivers have had more opportunities to get on the road and deliver much-needed goods to grocery stores and healthcare organizations.

The California Freight Mobility Plan highlights seven main goals. They include:

  • Economic prosperity
  • Environmental stewardship
  • Healthy communities
  • Safety and resiliency
  • Asset management
  • Connectivity and accessibility
  • Multimodal mobility

Let’s break down some of these goals for a better understanding of what Caltrans is trying to achieve.

Multimodal Mobility

Multimodal mobility focuses on maintaining, enhancing, and modernizing the multimodal freight transportation system by updating and improving network efficiency in the trucking industry. The plan calls for a study dedicated to truck-only lanes and includes a possible truck-only toll or truck bypass lanes.

If California chooses to use a truck-only toll lane, it will use the funds for infrastructure overhaul and mass transit systems.

Environmental Stewardship
Another target goal in the Freight Mobility Plan is to support strategies that minimize or mitigate environmental impacts from the trucking industry. The plan suggests a strong parking pricing program in denser areas to limit competition for curbside commercial freight parking. The goal highlights a reduction in truck vehicle miles traveled and emissions generated by looking for parking.

Safety & Resiliency
California’s highways and byways have been plagued with infrastructure issues for decades. From potholes to obstructions, the state’s roads are in significant need of repair as they have led to many trucking accidents and safety concerns. In the past decade, California has averaged more than 250 truck accident fatalities per year, underscored by the fact that the national average has continued to increase year over year.

While this has put a new emphasis on the need for trucking companies to invest in comprehensive Trucking insurance, it also points out the need for better roads and better safety measures, including parking.

Again, truck parking is addressed in this section. Rather than call out the need for more studies, Caltrans wants to execute the recommendation from the state’s 2020-2021 Parking Study and expand existing parking facilities solely meant for trucking.

Keeping Healthy Communities in Mind
The Freight Mobility Plan also looks at enhancing the overall health of the communities the trucking industry is most engaged in. The goal is defined as improving community health and well-being by reducing the negative impacts of the freight and supply chain movement across the state’s highways and surrounding communities.

One way this may end up affecting truck drivers is by losing specific routes. The plan suggests diverting trucking traffic from heavily used routes to alternative ones that are further removed from neighborhoods.

About Western Truck Insurance Services
Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

DOT-FMCSA Updates to Drug Screening

Bob Holtzman

On June 5, the Federal Motor Carrier Safety Administration (FMCSA) released a Grant of Waiver regarding drug screening for truckers. This was done in response to furloughed truck drivers who found themselves out of work due to the coronavirus’s spread, which caused significant disruption to the industry and the employees it served.

As trucking employers begin to recall drivers who were laid off or otherwise not working for the company for more than 30 days, the cost and logistical barriers of testing many truck drivers in a short window of time are high FMCSA explained. This comes at a time when the trucking industry is facing economic challenges like never before.

This problem is further complicated by the reduced availability of controlled substances testing resources due to facility closures that continue to occur on account of the spread of COVID-19.

Granting an Extension

The FMCSA also noted that the waiver would extend from 30 days to 90 days, a period of time which drivers would qualify for the pre-employment testing exception currently held under 49 CFR 382.301(b). This would help employers out by allowing drivers to forego pre-employment testing who have participated in a controlled substance testing program that meets the requirements of 49 CFR within the previous 90 days of hire.

Allowing employers to push back pre-employment drug testing for drivers who were already tested within the previous 90 days will let employers see relief in the administrative burdens and costs related to administering tests. In turn, trucking companies can allow their drivers to get back on the road in a shorter time, thus promoting job growth and economic progress.

Moving Forward

The FMCSA’s waiver clarifies that it doesn’t change any of the remaining controlled substance and alcohol use testing requirements for a truck driver who performs safety-sensitive functions. Additionally, the motor carrier employers subject to the FMCSA waiver have instant and free access to driver-specific drug and alcohol violation information through the FMCSA’s Drug & Alcohol Clearinghouse.

The waiver applies to both re-hires and new hires as long as they were in a program in the past 90 days. This is a reasonable response to the pandemic still making its way through the United States, affecting the commercial trucking industry, and the subsequent return to work process the country is experiencing.

About Western Truck Insurance Services


Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck, and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

What the Trucking Industry Should Know About OSHA Inspections

Bob Holtzman

The trucking industry has seen major changes in a number of ways recently. Whether it’s systematic changes to legislation, like with California’s AB-5 legislation, or through unprecedented disruptions to supply chains, like with COVID-19, truck drivers and trucking companies have needed to adapt to the evolving industry. But while these changes have seemed abrupt, causing trucking companies to rethink how they approach everything from Truck insurance to operating hours, some industry updates can be prepared for, like with the recent OSHA updates meant to protect workers in the industry.

The Occupational Safety and Health Administration (OSHA) has the right to inspect any workplace. There are many different things that might trigger an inspection, but the ultimate goal is to make sure a business is compliant with rules and taking the right precautions to keep its employees safe.

Here are some things that the trucking industry should know about OSHA inspections.

What Are Some Reasons an OSHA Inspection Takes Place?

As noted above, OSHA has the right to inspect any company at any time to look for any discrepancies when it comes to workplace safety. OSHA prioritizes inspections, according to the most hazardous workplace, which puts the trucking industry front and center since it’s repeatedly referenced as a dangerous work environment for all involved. Here are some reasons why an inspection might be carried out:

  • Imminent Danger: These are hazardous scenarios that can end up causing death or serious injury to people.
  • Severe Injuries: The employer must report any major injury or illness promptly to OSHA, which then carries out an inspection.
  • Employee Complaints: OSHA encourages employees to speak up and report any health and safety hazards or violations.
  • Referrals: This kind of inspection occurs when a government agency, other organization or individual has reported a possible hazard at a worksite.

Typically, OSHA does not give employers a warning before it conducts their inspections. Exceptions to this rule might include imminent danger scenarios and inspections that can effectively be conducted following regular business hours.

How Can Trucking Companies Handle an Inspection?

Businesses that are covered by the OSHA Act should already have a course of action in place for handling potential inspections. Since these inspections can happen at a moment’s notice, preparation is key. Doing this will increase preparedness and limit the chances of panic should an OSHA inspector show up at a trucking company’s worksite or operations center.

When an OSHA inspector arrives, it’s important for trucking company supervisors to obtain their credentials and be cooperative. While volunteering information isn’t the right choice upfront, it still helps to be cooperative and not try to obstruct an inspection. The last thing a trucking company would want is to get in an inspector’s way or give up information that was not asked for in the first place.

What Are the Penalties of Noncompliance?

Not all companies are prepared for an inspection, or at least not thrilled to see an inspector come onto their site. If OSHA gives out a de minimis violation, meaning it’s a technical violation that has no direct effect on the health and safety of truck drivers, then OSHA will not issue a citation. However, there are serious penalties that OSHA can give out, such as:

  • Serious violations: this means there’s a significant chance that death or serious physical harm may occur, and the employer should have been made aware.
  • Willful or repeated violation: An employer intentionally and knowingly violated OSHA’s rules.
  • Failure to Abate: The employer failed to correct a previously cited violation. Money penalties for these violations are adjusted each year, but a serious violation can exceed $12,000.

What Should Trucking Companies Know About New OSHA Regulations?

OSHA spent most of last year increasing its number of employer inspections and pursuing new rulemakings and programs. In 2019, it conducted more than 33,000 inspections addressing workplace violations related to falls, chemical exposure, silica exposure, and other hazards.

OSHA also recently issued a proposed rule that would amend parts of the cranes and derricks in construction standard, as well as those that have to do with industrial trucks. The proposed amendments will include correcting references to power line voltage, broadening for forklifts carrying loads under the forks.

This also encompasses trucking companies that operate on commercial sites. Trucking companies should be aware of the violations listed above and avoid any potential fallout or legal ramifications that may come. This will help to keep employees safe and the entire work environment compliant with any updates OSHA may have.

About Western Truck Insurance Services


Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

AB-5 Legislation Update

Bob Holtzman

The state of California has asked a federal court to begin lifting the preliminary junction against imposing AB-5 on the state’s trucking industry. The requests to the Court of Appeals for the state’s 9th Circuit is part of the appeal of the attempt by the California Trucking Association (CTA) to be granted an injunction against the position that AB-5 has put the trucking industry in.

The state’s AB-5 Legislation has been a topic of controversy for over a year now. What it does is move 2018’s Dynamex California Supreme Court decision into law, which established an ABC test to determine the status of an independent contractor that could essentially eliminate the owner-operator model in California, and disrupting everything from investing in commercial truck insurance, such as general liability insurance, and the sharing economy.

According to the appeal by the attorney general’s office, the law set in place by the FAA in the early 90s “preempts state and local regulation that has a significant effect on the prices, routes or services of motor carriers.” This has been the position of the CTA as well and a case they have been trying to make since AB-5 began picking up steam last year.

The state’s appeal is mostly looking at the prices, routes, and services, as mentioned above, in the preliminary injunction. The state cited legal precedents that it said should be looked at as meaning that state labor regulations are not preempted by the Federal Aviation’s act.

Independent Contractors and Trucking Companies

If the argument that AB-5 doesn’t entirely ban the hiring of independent contractors as truck drivers by a company, the state’s argument stays focused on prices, routes, and services. The test brought on by AB-5, the ABC test, and the earlier standard used to decide if someone is a full-time employee or a contractor do not define the rights or benefits that a trucking carrier has to provide its drivers.

The state went on to argue that the decision to grant the injunction then offers no “substantive analysis on what impact labeling motor carriers’ drivers to be ‘employees’ will have on prices, routes, and services”. The state argues that what might be seen as a hurried nature of the CTA action is reason enough to overturn the injunction.

The state’s filing says the ABC test became a reality for trucking companies and their drivers with the Dynamex decision, which was put into place in April of 2018. However, the injunction wasn’t put into motion until December of 2019, plenty of time for the plaintiffs to seek injunctive relief during that time period.

About Western Truck Insurance Services
Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more!

Judge Blocks AB5 from California Trucking

Bob Holtzman

For those working as independent contractors in California, a lot of news has been swirling around in regards to their worker classification with their clients. From graphic designers to business consultants, a lot of professionals have had to rethink the way they operate under the new AB5 regulation passed at the end of 2019.

But quite possibly the biggest industry impacted by the new bill is the trucking industry, which is literally driven by independent trucking professionals who take one-off jobs delivering payloads from one destination to the next throughout the state. And since California’s economy is fueled by trade and commerce trucked along its highways, AB5 brought plenty of controversy with it.

Now, trucking companies and professionals in the industry can breathe a little easier as a federal judge has extended a temporary restraining order keeping officials from enforcing the terms of AB5.

Truckers Find Support

U.S. District Judge Roger Benitez listened to arguments but didn’t issue a full decision in regards to how AB5 will impact those in the industry. Instead, Benitez extended the temporary restraining order that was put in motion on December 31 and will be in effect until he makes a full-on decision on the preliminary injunction, which could take anywhere from a few days to a few weeks.

Some who oppose AB5 say it unfairly hinders trucking professionals and the companies they work for, affecting everything from tax classification to benefits to commercial truck insurance. Some go even further, pointing out that it may have major constitutional issues in terms of how it impacts goods moved not only throughout California but the entire country.

The ABCs of AB5

The California Trucking Association filed a lawsuit challenging AB5 back in November. The new law put into motion a strict ABC test in order to determine the validity of independent contractors and their relationships with clients, such as trucking companies who hire out truckers. One of the requirements prohibited companies from using independent contractors unless the worker was performing work outside the usual course of the hiring company’s business.

CTA stated that AB5 is preempted by the commerce clauses in the U.S. Constitution and comes in conflict with the Federal Motor Carrier Safety Act as well as the Federal Aviation Administration Authorization Act of 1994, which bans states from enacting laws that have an effect on a motor carrier’s prices or services.

However, while this may be a small victory for trucking professionals and organizations like the CTA, the state government is making efforts to enforce AB5. Governor Gavin Newsom’s proposed 2020 budget includes $20 million in additional funding to make sure AB5 is enforced.

But Newsom and other lawmakers are fighting adversity on multiple fronts as the Western States Trucking Association also filed a complementary suit focused on Ab5 and how it treats motor carriers that provide trucking services. And creative professionals, including freelance writers and photographers, filed their own suit in December, alleging that the new bill restricts the media.

And in a state where technology is not only born (i.e. Silicon Valley startup culture) but fuels the economy, it’s no surprise that app-based tech companies such as Uber and Postmates, which run on the efforts of independent contractors, have filed a similar suit of their own.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

The Drug and Alcohol Clearinghouse is Now in Play: What to Know

Bob Holtzman

Beginning Monday, January 6, the federal government has begun overseeing how fleets perform background checks on prospective employees and owner-operators within the trucking industry. Under the banner of the Drug and Alcohol Clearinghouse, a database of drivers who have failed or refused a drug test at some point in their job search in the industry will be stored and curated. 

Fleets of all sizes will be required to input this information into the database for all new driver hires as well as on a yearly basis for existing drivers.

The Clearinghouse was set up to help trucking companies be safe from hiring employees who have been hit with fines and violations in the past related to drug and alcohol offenses. While having resources to tap into, such as commercial truck insurance to provide the funds needed for legal coverage and settlements, is important, it’s even more important to avoid major fees and violations by staying true to the law at hand.

If trucking companies violate these terms and regulations, it can spell major legal trouble for them as well as reputationally.

Here’s a better look at what to expect from the new Clearinghouse requirements.

Current Requirements

Fleets currently are required to call prospective drivers’ prior fleets in order to perform thorough background checks. The fleets are required by law to perform this contact to inquire about failed drug tests. However, there have been some discrepancies in the past that have left the door open for drivers with checkered pasts to get back behind the wheel and possibly cause more trouble.

Fleets can skip over making this kind of inquiry and not be held accountable. What’s more, a prior employer might not provide truthful information regarding the driver in question.

Beginning on January 6, information on drivers will be available, showing drivers who have been cited for violating alcohol laws specific to trucking. There will also be information and resources available on whether a driver has completed the correct return-to-duty process after a positive drug test.

One-Truck Contractors

Independent owner-operators have always been required to participate in a drug-testing program or another third-party administrator program. With the new Clearinghouse rules, these operators will need to register as a company instead, and need to designate a consortium to handle the annual queries required by all CDL holders.

Drug testers will be responsible for inputting any positive drug tests into the new system.

Leased Owner-Operators

These professionals will need to create a clearinghouse account, although it’s not required. But any truck driver will need an account to switch between fleets due to the new fleet needing to inquire about that record specifically. Having an account will help the driver ensure there’s no mistakes or inaccurate information on their record.

When switching between carriers, leased owner-operators will need to authorize fleets to run a query on their CDL within the clearinghouse database.

Small-Fleet

Full compliance with clearinghouse regulations is mandatory, no matter the size of the fleet. Even small, two-truck fleets will have to comply by performing a full query on every new driver. Small fleets will have to register as an employer in the database and purchase queries at $1.25 apiece. These small carriers can take care of the administrative duties either in-house or through third-party outsourced drug screenings.

By the beginning of the new rules on January 6, fleet policies must post that any positive drug tests, refusals, and alcohol violations will be submitted into the clearinghouse database.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

New Jersey Joins California in Targeting Owner-Operators

Bob Holtzman

In recent months, news out of California has focused on new legislation around worker classification and how it’s poised to affect independent contractors, including owner-operators in the trucking industry — an industry that fuels the state’s economy.

Truck drivers and trucking companies are scrambling to propose an alternative solution to the new AB 5 bill, which will re-classify truck drivers as full-time employees instead of contactors, upending the way the industry has handled everything from benefits to hours worked to commercial truck insurance.

Now, one state on the other end of the country is following suit, adding to the battleground for motor carriers that use owner-operators.

Jersey Drivers

The state Senate of New Jersey, a state that sees plenty of freight of its own move along its highways and byways, will take up legislation aimed at limiting what workers can be considered contractors. The Senate’s labor committee recently debated a new bill introduced by Sen. Stephen Sweeney that would make employers use the ABC test to determine whether a driver should be classified as an employee or contractor, just like in California.

The bill takes after California AB 5, a new law that will take effect on January 1, 2020. In New Jersey, the legislation has the potential to raise trucking costs and comes at a time when the demand in the state for trucking operations is growing. Nearly four out of every five containers that moves through the Tri-State area are hauled via truck and two-thirds of them are warehoused in New Jersey.

Limits on independent contractors will add pressure to New Jersey’s minority workers, with two out of every five drivers coming from that demographic, compared to 30 percent across all industries. A move like this is causing many drivers to think about their next career step, like in California where 70,000 independent contractors are doing the same thing.

Cracking Down on Trucking Companies

Apart from the potential new legislation in New Jersey, trucking in the state is possibly facing yet another new piece of legislation that could hurt employers when it comes to wage disputes and the additional costs of providing benefits plans for independent contractors.

What’s more, New Jersey recently enacted a law similar to California that will increase the risk for employee misclassification, holding shippers liable for wage disputes between drivers and motor carriers. However, in New Jersey, the penalties are heavier as employers found liable for not paying wages due to misclassification could face up to a 200-percent increase in damages and other costs.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

California Trucking Association (CTA) Files Legal Complaint Against AB 5

Bob Holtzman

In California, the state’s governor Gavin Newsom spearheaded a complete upheaval of the labor market. Through a slew of new bills passed this fall, California is redefining what it means to be a contract worker and a full-time employee, while simultaneously changing everything from how people get benefits and find the right kind of insurance.

Taking effect on January 1, 2020, California businesses — especially those that rely on contract workers and hired hands, like transportation and creative services — will have to retool their hiring practices and worker classification. One major bill getting the spotlight is AB 5, which is being described as a piece of legislation that could completely disrupt the gig economy in California, a state that relies heavily on contract workers.

One part of that sector that is feeling the pressure is the trucking industry, which fuels the state’s economy through its massive freight operations throughout the state. However, those in the industry are putting up a fight, hoping to find a better solution for workers.

Taking The Case to Court

In a legal complaint filed on November 12, the California Trucking Association (CTA), along with two owner-operators, argues that AB 5 and Dynamex are preempted by federal law and looks to enjoin application of those regulations to the trucking industry as a whole.

The case (California Trucking Association v. Becerra et al.) is currently pending in the U.S. District Court for the Southern District of California. In it, the CTA and the owner-operators on file allege that the new law would make it impossible for CTA’s motor-carrier members to have the same impact in their trucking services due to how it would change the way companies classify truck drivers.

With the current owner-operator model, which hires out drivers as contractors instead of full-time, permanent employees as the new bill would make mandatory, the benefit is that it provides motor-carriers and contractors the flexibility to meet the fluctuating needs of the shipping market.

Testing The Market

The main part of the new bill that has come under scrutiny is the ABC test, which categorizes drivers as employees of a company rather than independent contractors. Under the new test, an individual is classified as an employee, full-time, unless the employer can prove that:

  • A. the worker is free from the company’s control
  • B. the worker performs work that isn’t central to the company’s business
  • C. the worker has an independent business, trade or occupation in the industry

The CTA alleges that the test will prohibit the traditional owner-operator model the trucking industry has relied on. This, the CTA says, will bring economic hardship to not only truck drivers and trucking companies but the businesses they work with in trucking commodities, such as perishables, throughout the state.

The CTA is trying to address the long-term effects that the new bill would have on the industry and the individuals within it before the January 1 effective date. AB 5’s complete overturn of the trucking industry requires more time and planning from trucking companies to raise the capital to hire drivers and purchase trucks and tools, not to mention take care of benefits and truck insurance.

Right now, the plan is to move forward with ABC testing and classification in a state that relies heavily on independent contractors. The reality is that hundreds of thousands of independent contractors in the state will turn into employees overnight under the bill. Beyond trucking professionals, everyone from dancers to writers to bartenders will be impacted in some way.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates, and coverage changes.

Federal Independent Contractor Model Up for Further Debate in Congress

Bob Holtzman

With the air of the recently passed AB5 hanging over California like a smog, and with executives from ride-sharing tech giants Uber and Lyft failing to appear at a Congressional hearing over lax safety oversight, lawmakers are turning their focus to independent contractor classification in the country.

Debates in Congress have been spurred on by regulations out west in California where legislation was passed by the State Assembly in May and the state Senate in September, outlining a way to determine the work status of independent contractors, such as truck drivers or ride-sharing drivers.

The hearing, which was overseen by the Highways and Transit subcommittee of the House Transportation and Infrastructure (T&I) Committee in October, honed in on the need for driver background checks for transportation network companies. This has all happened in the wake of homicides and assaults committed by people posing as ride-sharing drivers.

“It’s hard to imagine that Uber and Lyft didn’t actually show up here today – it’s really disrespectful to the committee and a bad play on their part,” said Thomas Suozzi (D-New York).

The Democrat from New York and his Republican colleague from New Jersey, Chris Smith, threw their support of laws requiring enhanced vehicle identification to make it more difficult to impersonate an actual ride-sharing driver.

Beyond addressing public safety issues surrounding independent contractors, whether in ride-sharing or trucking, Congressional members also debated the topic of worker classification, a big issue coming out of California, as mentioned above. The law will go into effect on January 1, 2020, and will lower the threshold in California for classifying a worker as an employee. This is projected to have major cost implications for everyone from ride-sharing companies to freight companies who hire truck drivers on a daily basis.

Certain Congressional members have shown support for the AB5 legislation, detailing its goal of identifying the difference between independent and permanent employees. This will surely have freight companies rethink the way they hire employees and classify them in their truck insurance options. This issue is gaining attention for its effects on Uber and Lyft in a state where ride-sharing arguably got its start or at least its growth.

The debate around whether or not to elevate stricter tests on independent contractor status outside of California, using the state as a jumping-off point, was also brought up with Republicans on the Hill shooting it down and Democrats wanting to push it along.

“I don’t necessarily think that this committee should blindly follow the state of California,” said Pete Stauber (R-Minnesota). My state is much different than the state of California. It’s much more rural, and I think we have to have a broader look at this issue the transportation network companies, and how we can serve not only urban but rural communities.”

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