New Law Protects Independent Truckers in New York

Published: Mar 20, 2014
ReneS / Foter / CC BY

The state of New York has a adopted a new law (bill S5867) in an effort to prevent employers who misclassify truckers. The law, coming into effect on April 10th, will go “beyond standard Internal Revenue Service definitions of employee and independent contractor.”

To determine which category a business entity falls into, there will be a 11-point test. Independent contractors will be considered those “who operate their own equipment to haul goods in exchange for compensation and receive an IRS Form 1099.” Kendra Hems, New York State Motor Truck Association’s president thinks the law is now better designed to protect the interests of independent contractors.

Anyone found guilty of misclassification is facing harsh fines. Every misclassified employee (as a first offense) will cost employers “up to $2,500 per misclassified employee and up to 30 days in prison or up to $25,000 in criminal fines”. For a second offense the fines can go twice as high.

Read the full story at Land Line Magazine.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.