NJ Assembly Clears Bill To Stop Trucker Misclassification

Law360, New York (May 20, 2013, 5:37 PM ET) -- The New Jersey Assembly on Monday passed controversial legislation that supporters say would crack down on companies that duck taxes and employee benefit obligations by mislabeling port and parcel delivery truck drivers as contractors.

Cleared in a 43-30 vote with five abstentions, the union-backed Truck Operator Independent Contractor Act would establish a presumption that port and parcel delivery truck drivers are employees unless companies can prove otherwise.

The misclassification of such truckers is a widespread problem and allows unscrupulous employers to avoid Social Security, Medicare and...
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