Daily Labor Report®

Truckers Try to Idle New Calif. Test for Who’s an Employee

July 20, 2018, 6:40 PM

A business association wants a federal court to nullify a recent California Supreme Court ruling that makes it harder for companies to classify workers as independent contractors.

Federal transportation sector deregulation prohibits states from carrying out laws that affect the industry’s labor costs, the Western States Trucking Association says in its July 19 complaint. The state supreme court’s ruling on classifying workers will have that effect, the association says.

Businesses face different legal and tax requirements for workers classified as an employee versus an independent contractor. Employers must withhold income tax and medicare and medicaid from wages paid to employees....

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