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Several labor regulations in various stages of development could have broad implications for the trucking industry this year.
Trucking executives will focus on the regulatory rules, which are due to come into force alongside a separate framework of equipment regulations in 2024.
Independent contractor classifications, meal and rest break requirements and more training for new drivers are subject to new regulations.
Industry interests shared their ideas and opinions on the rules as they plan for next year.
Federal rule for independent contractors
In January 2024, the Department of Labor revealed a shift from the 2021 process for classifying independent contractors.
The government said this would mean that a weighted factor analysis would no longer apply to industrial relations assessment, but instead six factors would be equally influential.
For trucking, there are no exceptions, said Truckload Carriers Association Senior Vice President of Safety and Government Affairs David Heller. But the change, if implemented in March, will help businesses in their ability to direct the safety training of independent contractors who work as drivers.
“Before, it was almost a no-holds-barred approach because they wanted to keep that distance between independent contractor and company to make sure they weren’t considered employees,” Heller said. “This rule helps clarify that carriers are permitted to address aspects of the Federal Motor Carrier Safety Regulations that relate to these drivers.”
The rule could create complications in how businesses operate. However, despite the changes, federal policy is at odds with California’s AB5 law affecting independent contractors because there is no preemption the ABC testHeller said.
“The particularly troublesome point B of this test that says if you’re in the business of delivering freight, you basically can’t have an independent contractor deliver freight because you have company drivers to do it,” he said.
Meanwhile, the legal battle against AB5 continues involving the California Trucking Association and the Owner-Operator Independent Drivers Association.
Meal and rest breaks
A push from groups involving the Teamsters seeks to do meal and rest requirements in California and Washington state they apply to truckers.
That creates a conflict with federal regulations, which the Federal Motor Carrier Safety Administration has ruled state laws preempt.
“If they reverse this, truckers could face increasing compliance with state rules,” said Joe Rajkovacz, director of government affairs and communications for the Western States Trucking Association. “The last thing you want is to cross a state line and see what your new requirements are.”
The Truckers Association previously noted its opposition to changing the current federal rules. Heller said a patchwork of rules might not be the best idea.
FMCSA is requesting comments on the matter until February 26, 2024.
Transparency of broker transactions
A notice of proposed rulemaking is scheduled for October that could lead to more regulation of brokers, following concerns from OOIDA and the Small Business in Transportation Coalition.
OIODA wanted the government to rule that brokers must send trade information electronically within 48 hours and prevent brokers from delaying the release of trade information, OIDA Director of Federal Affairs Jay Grimes said.
“We’ve seen various loopholes and measures that brokers take to really make sure that motor carriers don’t have access to that information,” he said. “We would love to see, you know, the provisions that we applied for. I think so [it] it could be more of an informative proposal to try to gather more feedback.”
Safety and training
OIDA Communications Director George O’Connor hopes FMCSA can adopt some recommendations to strengthen training of new drivers to ensure entry-level workers are operating the equipment safely.
ATA Senior Vice President of Regulatory Affairs and Safety Policy Dan Horvath stated that establishing rules it will propose some measures but will also ask industry what else it needs to do.
“The DOT wants to look at the curriculum itself and see if there are ways to improve,” Horvath said. “What’s on the agenda right now is about adding additional curriculum requirements to the process.”
Horvath said the rulemaking will propose some measures, but will also ask the industry what else it should be doing.
FMCSA said in a regulatory perspective that it will seek stakeholder input on ways to improve the safety of female drivers and instructors and “address the negative impact of sexual harassment in the workplace”.