Home > workers compensation compliance, Workmens Compensation > Trucking Industry Targeted by Department of Labor Auditors

Trucking Industry Targeted by Department of Labor Auditors

There is a saying: Anything with wheels. This means any long haul, inter-model, parcel delivery, or bicycle freight carrier (includes parcels)  who receives a 1099 will be a workers’ compensation covered worker–read that “employee” by whomever hires them. Some states will make you pay payroll taxes, too.

Got your attention? Good. Every auditor knows that the small independent contractor  is a lousy record keeper. What sin did the hiring authority commit? Not monitoring his hired independent contractor/owner-operator compliance.

For example in Washington, the state is  including HR accounting firms  similar to PEOs even though they hire only independent contractors and assess premiums as ‘covered workers’. In Oregon, these same people have to have a ‘leasing contract’ on their vehicle for each distributor they work. In Nevada, no chance–all tire companies are covered workers unless they form partnerships. The old sole-proprietorships of the 1980’s are now the new LLCs. Interesting.

So what is a fella to do? Find someone to explain what compliance regulations pertain to your specific state business. It is not hard; just go talk to them. I would recommend the State and insurance company. If they do not want to talk to you, talk to us at http://bit.ly/VuTNwg and use our tools at http://bit.ly/TEtFwD. Try our FREE iPhone app.

No worries if you monitor your independent contractors EVERY year so they do not become “employees”. The rules keep changing……

Ted Carlson is a certified fraud examiner specializing in compliance programs for independent contractors in ANY industry dealing with workers’ compensation and unemployment insurance audits.

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