Trucking pushback on new contractor rule

Insiders: Trucking companies are pushing back against the Department of Labor's new independent contractor rule, arguing it blurs the lines between employees and contractors. Will this rule make it harder for them to operate without legal risks?

Today's Lineup

🔷 What do we know about Walz’s trucking track record?
🔷 Senators push back on Biden’s EV rule.
🔷 The latest trucking M&A.
🔷 J.B. Hunt hits a key AV milestone.
🔷 Where do Class 8 truck orders stand?
-Bianca Prieto, Editor

POLICY

Calls to reverse gears on the independent contractor rule 

Colt & Joe Trucking, a New Mexico-based trucking company, is asking a federal court to reverse the Department of Labor’s independent contractor rule. That rule took effect in March, and it uses a six-point test to decide if a worker is an employee or a contractor. 

In a lawsuit, Colt & Joe’s called the rule “an open-ended balancing test that obscures the distinction between contractors and employees.” It said the DOL’s rule makes it impossible for trucking firms to hire contract carriers or drivers without risking the violation of labor laws. 

The DOL will need to file a reply before the judge makes a decision. Plus, other trucking firms and business groups have filed lawsuits against the new independent contractor rules. 

Why it matters: One of the DOL’s six factors in determining an employee versus a contractor is “whether the work performed is integral to the employer’s business.” Trucking firms large and small rely on independent contractors and drivers to haul shipments. The DOL’s new rule calls that relationship into question.

 Get more details from Land Line. 

• HOT JOB: Record heat makes truck driving tougher than ever.
• EV RESISTANCE: Senate GOP opposes White House EV plan.
• TWO TRUCKS TO TANGO: FST Logistics acquired Dancer Logistics.
• ON A ROLL: Logistics expand for 8th month straight.

POLITICS
Where Walz stands on trucking 
We’re learning more about Tim Walz, VP Kamala Harris’ running mate pick, and his track record on trucking. During his 12 years in Congress as a Minnesota representative, he co-sponsored a bill to repeal the 12% federal excise tax on sales of new heavy-duty tractors and trailers. Walz also sponsored bills for VA physicians to perform DOT physicals for veterans, enforcements for sleep apnea screenings, and MAP-21, which resulted in the ELD mandate.  

Why it matters: Trucking isn’t typically a top priority for any presidential administration, but Walz’s track record gives some clues about how he may advocate for certain industry provisions. (CCJ Digital)

TECHNOLOGY
J.B. Hunt hits an autonomous milestone 

J.B. Hunt’s autonomous trucks have driven more than 50,000 miles. The project, which started in January with autonomous tech company Kodiak Robotics, has involved hauling Bridgestone tires between South Carolina and Dallas, Texas. The results: no accidents and 100% on-time pick-up and delivery.

Why it matters: J.B. Hunt sees autonomous trucks as a way to solve the costly issue of backhauls and empty miles. Many trucking groups have expressed safety concerns about AVs, but the zero accidents could start to calm some of those fears. (CDL Life)

BUSINESS

Covenant hikes rates, again and again 

TL carrier Covenant Logistics Group hadn’t raised prices in two years. That all changed this spring, when it saw a big pickup in demand. The trucking company increased rates three times in 45 days during its most recent quarter.

Why it matters: The trucking industry has been operating in a freight recession and shipper’s market for two years. An increase in demand and hike in prices could be a sign that trucking rates are finally rebounding. (Trucking Dive)

PRODUCT

Class 8 orders tumble 

Trucking companies are hitting the brakes on heavy-duty truck orders. Data from FTR reveals Class 8 orders fell 7% year-over-year in July.

Why it matters: Fleets are proceeding cautiously when it comes to capacity, as they see where shipper demand is headed. Trucking firms are still investing in new equipment, just at a slower pace. (Fleet Equipment Mag) 

• National Association of Small Trucking Companies (NASTC): Founded in 1989, the organization supports small carriers by offering cost-saving benefits and advocating for a level playing field.
• The Trucking Alliance: The Trucking Alliance works to enhance highway safety by providing information and pushing for reforms to decrease truck accidents 
• OSHA Trucking Industry Resources: Check out the latest OSHA resources designed specifically to enhance safety and compliance within the trucking industry. 
• Women in Trucking:  A non-profit that promotes women's employment in the trucking industry, celebrates their achievements, and works to remove industry barriers for women.

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