N.J. Reconsiders Independent-Contractor Bill
This story appears in the April 21 print edition of Transport Topics.
A bill opposed by the trucking industry to classify independent drayage operators and parcel delivery drivers as company employees has been reintroduced in the New Jersey Legislature.
An identical bill was approved by lawmakers last year but vetoed by Gov. Chris Christie (R).
Sponsors of the bill, reintroduced in March, are Assemblyman John Wisniewski and Sen. Loretta Weinberg, both Democrats.
鈥淭he fact that the governor vetoed it once does not mean that it no longer needs to be addressed,鈥 Wisniewski said.
The trucking industry portrays the bill as if it would eliminate independent contractors, which is untrue, he said.
鈥淏ut if I have to come to your place of employment, and I have to drive your truck, and I have to wear your uniform, and I have to have your logo, and I have to follow your work rules, I鈥檓 no longer an independent contractor,鈥 Wisniewski said.
If workers fit all the criteria for being contractors, Wisniewski said, he has no problem.
鈥淏ut when you require them to be an employee in every respect except how they get compensated, that鈥檚 a problem,鈥 he said.
A battle over contractors is being played out in several port areas around the country, with labor unions and other critics of independent contracting arguing that drivers are being classified as contractors so companies can avoid work rules and payroll taxes.
Supporters of independent contractors have responded that they are small-business owners and that trucking needs them in order to meet flux in freight demand.
Gail Toth, executive director of the New Jersey Motor Truck Association, said the group will continue to fight such legislation.
鈥淎nyone that really cares about the people of New Jersey will not vote for that bill because it鈥檚 not designed for the people and the businesses in New Jersey,鈥 Toth said. 鈥淚t鈥檚 designed for union organization, and that鈥檚 not right.鈥
If passed, the measure would wipe out the port drayage model there, Toth said.
She also said NJMTA is drafting a legislative proposal to clearly define independent contractors versus employees.
鈥淚t would allow the independent contractor model to continue to exist but clarify 鈥 for those who fear there鈥檚 some map of misclassification going on 鈥 the set of rules that must be followed in order to be classified as independents,鈥 Toth said.
Wisniewski said: 鈥淚 welcome that. I don鈥檛 know why they haven鈥檛 been involved before now.鈥
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