Commercial Goods Transportation Law In Effect
The NYS Workers’ Comp Board issued a bulletin on 4/4/14 advising employers that attempts to describe delivery drivers as “independent contractors” will be subject to the NYS Commercial Goods Transportation Industry Fair Play Act. To be considered an independent contractor, these drivers must meet all three of the following criteria: the person is free from control and direction in performing the job; the person is performing services outside of the normal business for the company; and the person is engaged in
an independently established trade, occupation or business that is similar to the service s/he performs.
Commercial Goods Transportation Law Details
The NYS Commercial Goods Transportation Industry Fair Play Act indicates that any person performing commercial goods transportation services for a commercial goods transportation contractor is presumed to be an employee of that commercial transportation contractor. A commercial goods transportation contractor is defined as a business in NYS that compensates commercial vehicle drivers who possess any state-issued commercial driver’s license to transport goods in NYS. The NYS Commercial Goods Transportation Industry Fair Play Act, which is effective 4/10/14, means that any worker injured while performing commercial goods transportation services will be considered an employee of the contractor they are working for.
Commercial Goods Transportation Law Penalties
The NYS Commercial Goods Transportation Industry Fair Play Act states that any employer that “willfully violates” this law by failing to properly classify its employees will be subject to up to a $2,500 fine per misclassified employee for a first violation and up to $5,000 per misclassified employee for a second violation within a five-year period. More serious penalties may also be assessed.
Contact us today for more information on what the new law means for you and your business, as well as to receive a competitive Workers’ Comp quote.