Return to Independent Contractor Status Affects Trucking Insurance

On January 25th, 2019, the National Labor Relations Board changed its decision regarding whether truckers qualify as contractors or full employees. As a result, commercial truck insurance for many stands to see an impact.

Altamonte Springs, FL – February 25, 2019 – Forerunner Insurance Group wishes to announce a new National Labor Relations Board (NLRB) decision that could affect truck insurance. The NLRB convened in Washington, DC on January 25th to discuss the ruling of the acting regional director regarding the status of the Super Shuttle franchisees at Dallas-Fort Worth airport. This ruling reverts back to the old independent contract standard and impacts commercial truck insurance nationwide.

 

The Super Shuttle decision involved several Super Shuttle franchisees at Dallas-Fort Worth airport. In the original case, Amalgamated Transit Union Local 1338 cited Super Shuttles prior policy of recognizing its drivers as employees, paying an hourly wage to transport customers in shuttle vans owned by Super Shuttle itself. However, in 2005, the company decided to convert to a model that named drivers as independent franchisees. 

 

Drivers purchased their own vans, paid a fee to use the Super Shuttle brand, and were required to adhere to strict contract regulations, including uniform and appearance policies as well as drug screening, training, and criminal background checks. The vans, too, were subject to regulation, with a lengthy set of requirements. In exchange, drivers needed to set their own schedules, and could work when and if they desired. 

 

The NLRB determined on January 25th that the board should uphold the regional directors decision that since the drivers had significant opportunity for entrepreneurial gain with very little oversight by Super Shuttle, the best term for them is independent contractors, not employees. The decision could set the precedent regarding how truck owners are viewed by their own companies. If the NLRB continues to assign entrepreneurial opportunity this level of importance, they will likely consider truck owners to be independent contractors, changing the way in which drivers and companies approach commercial truck insurance.

 

 

Forerunner Insurance Group is an Altamonte Springs, FL-based insurance group specializing in commercial truck insurance for drivers in Florida and Georgia. Forerunner has focused on the needs of drivers in the area for years, supplying advice and education in addition to insurance. In particular, Forerunner Insurance Group desires to inform clients regarding the impacts of these new NLRB regulations and the ways in which they affect commercial insurance.

 

For more information, please contact:

 

Joshua Jones, Founder

407-675-3857