Employee or Independent Contractor?

Iowa acts to protect owner-operator status 

Photo by Markus Spiske from Pexels

From Land Line, Keith Goble reports that Iowa passed a law that says that the owner of a truck in the trucking industry is an independent contractor. Keith writes:

The state of Iowa soon will have a new rule that is intended to protect the trucking industry’s independent contractor classification for individuals who own their own truck.

On June 18, Gov. Kim Reynolds signed into law a bill to define vehicle owners. Specifically, the new law automatically classifies owner-operators as independent contractors.

The new rule covers owner-operators performing services while operating the vehicle.

The Iowa Department of Workforce Development reports that under current state law there are 894 individuals identified as owner-operators who are classified as employees and not independent contractors.

Iowa’s SF2296

Iowa state Rep. Gary Worthan, R-Storm Lake, has a family trucking business. He served as the House sponsor of the owner-operator bill that is now law.

During House floor discussion on the bill, Worthan described who the bill would cover.

“It will include anyone who owns their own truck, truck tractor, or truck-tractor combination. It will also include those who are in a purchase agreement, or a lease-to-purchase agreement, of a truck tractor,” Worthan said.

He added that certain exceptions would apply.

Critics said the rule change is too broad in its protections.

The new law takes effect on July 1.

Read the full story at Iowa acts to protect owner-operator status – Land Line

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