As of April 10, companies in the commercial goods transportation industry must comply with strict rules governing use of independent contractors. The Commercial Goods Transportation Industry Fair Play Act creates a presumption that any person transporting commercial goods (e.g., truck drivers) are employees. It also amends the unemployment and workers compensation insurance law to require coverage of such workers.
This latest law demonstrates the continued focus of governments on employee misclassification. Employers in this industry should make sure they review their independent contractors to ensure they satisfy the new test for being independent contractor or invert workers to employees.