Government definition of owner-operator growing more specific

July 1, 2008
If a driver owns his tractor and/or tank trailer and is contracted to haul products for a carrier, he must be an owner-operator, right? Well, maybe. That

If a driver owns his tractor and/or tank trailer and is contracted to haul products for a carrier, he must be an owner-operator, right?

Well, maybe. That was the message at the May 18-20 annual conference of the National Tank Truck Carriers in New York City.

The mixed answer came from Greg Feary, an attorney with the law firm of Scopelitis, Garvin, Light, Hanson and Feary PC. He said that various states have as many regulations that govern whether a person is an independent owner-operator or a carrier employee. “The owner-operator model is under siege,” he warned.

“Some states have very trucking-specific statutes for defining owner-operators,” he said, adding, “Some states require the owner-operator to own vehicles, which in some cases includes both tractor and trailer.”

In the mix is congressional action to require the Internal Revenue Service to make the owner-operator-versus-employee determination. Feary pointed out that if the carrier controls the owner-operator's daily routine, the owner-operator might not be considered an independent contractor. The more drivers are controlled by the carrier, the more likely they will be considered employees.