How Does the Classification of Truck Drivers Determine Workers’ Compensation Rights?

It is a common practice for trucking companies to misclassify truck drivers as independent contractors. This makes it difficult for them to claim workers’ comp benefits, and they have to pay for their social security and Medicare taxes. Categorizing the truck drivers as a ‘non- employee’ saves the trucking company from taking responsibility for the driver’s actions.

The Latest Amendment

In June 2020, a bill has been passed by the California Assembly. It puts specific barriers to the classification of workers as a contractor. The bill aims to revolutionize how workers fight over a right and save them from the hassle of fighting in court for years.

If the bill were to go through, there would be many independent contractors entitled to obtain the benefits that are usually awarded to employees. The new classification would cover a variety of workers. However, the bill deems to exclude architects, barbers, and insurance agents, and more such workers out of its scope.

Usually, a worker can avail various work-related benefits depending on their status as an employee or contractor. There are many employees as well as contractors, but unless they do not know how they have been classified, they might not understand their rights.

As an independent contractor, you may have the freedom to choose how you complete your work, but you are responsible for paying your taxes, unemployment, and workers comp funds, and getting health insurance if you wish to access those benefits. If you are an employee, you are under the control of your employer and have access to certain benefits provided by your employer, including workers’ compensation, unemployment, and health insurance. It is good to know whether you are classified as an employee or contractor before claiming your workers’ compensation benefits.

Classification as an Employee

In a court, the decision to classify a truck driver as an employee is based on several factors like work hours, pay, uniform, and work schedules. As a result of this bill, many trucking organizations will have to change their habit of avoiding overtime wages and rest breaks to their workers.

All employers need to have a comprehensive worker’s compensation policy and insurance plan. For more information on workers’ compensation claims and assistance with your insurance needs, contact the experts at PMC Insurance Group today.

PMC is the single source for workers’ compensation solutions. With experts on-call to help independent insurance agents stay competitive, we provide exclusive programs in Healthcare, Transportation and Temporary Staffing; access to markets nationwide; and creative solutions – delivering more options and winning outcomes. Find out how PMC can help you expand your book of business. Contact us today at 781-449-7744 or info@pmcinsurance.com.

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