Employee port truck drivers who are being misclassified as owner-operators could benefit from a bill moving through the California legislature.
Doug Morris, OOIDA director of state government affairs, is monitoring the legislation to make sure it does not negatively affect owner-operators.
Senate Bill 703
The Assembly Transportation Committee voted Tuesday, July 15 to advance a Senate-approved bill that would require trucking companies and truck drivers to provide information to the Port of Long Beach and the Port of Los Angeles.
The ports would be required to provide information collected from trucking companies and truck drivers to the California Labor Commission.
Trucking companies would be responsible for providing information on employee truck drivers. Information would have to include a worker’s compensation insurance policy that covers all employee truck drivers. The number of employee truck drivers covered by the insurance policy also would have to be submitted.
Information would have to be provided to the state before entering a port for the first time and on an annual basis thereafter.
Truck drivers who are not employees would be required to provide to a port before entering for the first time and on an annual basis information that includes proof of insurance, motor carrier number, federal Department of Transportation number, California motor carrier permit and DOT registration.
Trucking companies would be required to update the port within 30 days of a change to its operation that results in more than 50% of its employees being replaced by independent truck drivers.
Failure to comply could result in a fine of up to $5,000. False or misleading information submitted to the state could result in a fine of up to $20,000.
The ports of Los Angeles and Long Beach would have to disclose information provided by a trucking company on its website.
Ports also would be required to provide to the Labor Commission quarterly information regarding each truck that entered the port during the prior month. Submitted information would have to include the name of the port and gate used for entry; the date and time of entry; the name of the truck owner; and the name insured on the insurance policy that covered the truck.
Support and opposition
Sen. Laura Richardson, D-San Pedro, told the Assembly Transportation Committee that SB703 “represents a critical step in ensuring that our state’s trucking industry operates in a fair, legal and transparent manner.”
“Misclassification of workers as independent contractors is a long-standing issue in the trucking industry, particularly at our ports,” Richardson said.
She added that by requiring the collection of key information about trucking company operations, “we can identify bad actors, ensure labor laws are upheld and protect compliant businesses that are being undercut by those breaking the rules.”
The ports of Long Beach and Los Angeles oppose the truck driver bill. Port spokespersons cited to the committee “undue burdens imposed on the ports” that could result from the proposed changes.
SB703 awaits further Assembly consideration. If approved in the chamber, the bill would head back to the Senate to sign off on Assembly changes before it could advance to the governor’s desk. LL
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