The State of California Wishes To Assist Its Beloved and Valued Trucking Companies Comply With Labor Laws Regarding Classification of Drivers as ICs. Well, that’s a stretch. In reality the state still hates you if you use ICs. BUT, they did publish something for all the world to see which at least backs them in to a corner. California Breaks Down The B2B Exemption There haven’t been too many new developments lately in the war between the trucking industry, and the state of California over the ABC test and how to classify truck drivers as independent contractors. The battle rages on between the ..read more

Oral Fluid Drug Testing Rules Released By USDOT The Department of Transportation (DOT) published a final rule (effective June 1, 2023) that, among other items, authorizes employers to use oral fluid drug testing as an alternative testing methodology to urine drug testing. The final rule also: harmonizes with pertinent section of the HHS oral fluid Mandatory Guidelines, clarifies certain Part 40 provisions that cover urine drug testing procedures, removes provisions that are no longer necessary, adds eight new definitions, clarifying language to definitions and web links, and updates prov ..read more

Let’s Address The Terms Everyone Needs To Understand and The Nasty Stuff Everyone Needs To Avoid Any business relationship that involves transportation should be reduced to a contract: shippers, brokers, freight forwarders, 3PLs, motor carriers, and whoever else operates in the transportation world needs to be aware of, and include, critical contractual terms that address the following topics. Billing and Payment Everybody loves money, and I know I am no exception. Chances are so do you. So therefore, any contract should include specific language as to when payment is due, late penalties, inte ..read more

The Most Trucking-Unfriendly Federal Court Rules That AB5 (and the dreaded “ABC” Test) Violates The Equal Protection Clause of the US Constitution. This Decision Applies To App-based Industries Like Uber and Lyft BUT Could Very Well Apply To Trucking Companies. Let Me Explain. About the only industry that hated AB5 and the ABC test more than independent contractor truck drivers, were Lyft, Uber, and other so-called “gig based” businesses. Uber and Lyft had the same problem that the independent owner operators had: they could not satisfy the B prong of the ABC test. So, like the independent con ..read more

DR. MYNKO CERTIFIED BY MROCC AS MEDICAL REVIEW OFFICER For Immediate Release March 9, 2023 Rancho Cucamonga, CA — Dr. Mynko of HD Physical Medicine and Transportation Attorneys recently qualified as a certified Medical Review Officer(MRO). Dr. Mynko is a Medical Doctor, Transportation Attorney, Certified DOT Medical Examiner and now a Certified Medical Review Officer. Dr. Mynko was certified by the Medical Review Officer Certification Council (MROCC), an independent physician-based certifying body that conducts a rigorous and extensive application process and written credentialing examinat ..read more

The IRS Makes It Clear It Ain’t So Simple The two-check system involves treating an Owner-Operator as an employee truck driver, putting him or her on payroll, and issuing a second check to the Owner-Operator (now company driver) for the use of his or her equipment from which taxes are not withheld, and a 1099 is issued for the “rental” payment. Are the “rental” payments for the equipment wages which should be reflected on payroll? I know on the surface it seems simple. You simply convert the former independent contractor (A.K.A. Owner-Operator) to an employee, put them on payroll, with all of ..read more

Work Comp Auditors Are Now Applying the ABC Test In Audits of Trucking Companies and Demanding Proof that the OO has WC Insurance Here at Transportation Attorneys, we are seeing more aggressive auditing of trucking companies by their workers’ compensation insurance companies. And as I am sure you all know, the law in California regarding classification of workers as independent contractors has undergone radical changes over the last few years. Specifically, I am talking about the “ABC test.” The ABC test is the test utilized to determine whether a worker, or “business service provider” is an i ..read more

Can Your OTR Trucking Company Avoid California Jurisdiction on AB5/ABC? AB5, AB2257, The “ABC” Test and California Jurisdiction Can your trucking company escape the long arm of California law? Clients routinely ask me about how they can avoid AB 5 (now AB 2257), and the ABC test. What these questions really come down to is whether California jurisdiction applies, and whether you can rightfully be sued in Superior Court in California, face a California EDD audit, get dragged to the California Labor Board, concern yourself with defending against a work injury claim in California, in addit ..read more

ALERT: EDD Is Now Using The ABC Test! Will B2B Exemption Apply? AB5, AB2257, The “ABC” Test and the California EDD The California EDD is Now Enforcing the ABC Test Against Trucking Companies I recently had a consultation with a client who was audited by the California EDD. By the time I was contacted, the audit was completed, and the client was given a notice of assessment by the EDD. The reason I am sharing this story with my readers is to let them know that the California EDD is now using the ABC test to determine if an independent contractor is truly independent or misclassified as an ..read more

“ABC” Test Applies To Trucking Companies (CTA Loses Appeal To Supreme Court) 14 Months Ago I Wrote an Article With This Headline: Ninth Circuit Appeals Court Rules AB5 and ABC Test Are Not Preempted by Federal Law! California Trucking Companies Who Use ICs Are Now Easy Targets: Court Rules AB5 Not Preempted By Federal Law. I lamented this decision back then: As some of you may recall, AB5 codified the “ABC“ test to determine whether a worker is an independent contractor. For those of you coming out of a 3 year hibernation, here’s the dreaded ABC Test: 1) Part A of the test requires that ..read more