Contents
Legislation
- House passes PRO Act with strict ABC test
- COVID RELIEF ALERT – New Legislation Could Provide Additional Relief for Small Carriers and Brokers
Advocacy and Comment
Legislation
House passes PRO Act with strict ABC test
The U.S. House of Representatives on March 8 passed on a party line 225 to 206 vote legislation that would mandate a federal ABC test for worker classification similar to that in California’s AB 5. The Protecting the Right to Organize (PRO) Act (H.R. 842) now moves to the Senate. The same legislation passed the House in the 116th Congress but died in the Republican-controlled Senate.
Although Democrats technically control the Senate by virtue of Vice President Harris’ tie-breaking vote, H.R. 842 faces an uphill battle owing to the filibuster. Some observers believe that killing the filibuster altogether would be the only path to final passage of the entire PRO Act, although it is more feasible that individual pieces could pass as riders to other legislative vehicles. Regardless, House passage coupled with Democratic control of the Senate means that this is the closest Congress has ever come to essentially outlawing the leased owner-operator model.
The PRO Act contains a host of pro-labor provisions, but for the trucking industry, the most problematic measure is section 101(b), which includes a definition of an employee stating that an individual performing any service shall be considered an employee and not an independent contractor unless:
- A. the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact;
- B. the service is performed outside the usual course of the business of the employer; and
- C. the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.
In addition to imposing a federal ABC test, the PRO Act would explicitly declare misclassification of workers a violation of the National Labor Relations Act (NLRA). As such, the legislation would overturn the National Labor Relations Board’s August 29, 2019 decision in Velox Express, which held that misclassification is not a violation of the NLRA. For more on the PRO Act, visit https://www.congress.gov/bill/117th-congress/house-bill/842.
COVID RELIEF ALERT – New Legislation Could Provide Additional Relief for Small Carriers and Brokers
President Biden is set to sign the American Rescue Plan (“ARP”) this evening that will provide an additional $1.9 trillion in COVID-19 relief. The relief is in addition to the trillions that the Trump administration funded over the course of the past year. $50 billion will be used to fund new and existing relief programs for small businesses that are administered by the Small Business Administration (“SBA”). Some these programs include:
Paycheck Protection Program (PPP)
- ARP will give $7.25 billion funds for the existing PPP.
- Recent changes to PPP rules have been made by the Trump and Biden administrations making access to PPP loans more equitable, specifically for sole proprietors, independent contractors, and smaller businesses with up to 10 employees. If fall into one of those categories and haven’t taken advantage of this program, contact your bank before the latest deadline for the program of March 31, 2021.
- 2nd draws are available for eligible businesses if you have previously received a PPP loan.
Economic Injury Disaster Loan
- Provides grants for businesses up to $10,000.
Information on the above programs and other relief programs administered by the SBA is available on the following SBA website: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources. Note, the new law will also provide $1.32 billion in administrative funding to the SBA for resources necessary to further implement these relief programs.
Advocacy and Comment
This mid-month update reflects how quickly important legislation is moving through the new Congress.
Although the above analysis of the effect of House passage of the PRO Act is hopefully correct, the prospect of it becoming law is deeply concerning, particularly for owner operators and their carrier partners. The importance of the model to the trucking industry and to small businesses has still not gained traction and is a “hot topic” of general industry concern. (See March Regulatory and Legislative Update)
As predicted, the new Department of Labor has formally repudiated the “Economic Realities” rule promulgated by the former DOL. In doing so, it suggests that based upon existing precedent it might have denied employee benefits to existing workers that could have been reclassified as independent contractors. In turn, any change contemplated by the new Administration which would require reclassification of owner operators would deprive blue collar entrepreneurs of their long held right to be treated on equal footing with other independent businessmen.
Secondly, included is a description of the possible effect of the $1.9 trillion COVID-19 legislation on additional stimulus funding. The dysfunctionality of the earlier PPP grants is hopefully over, and funds will be available to needy small businesses and independent contractors. If you missed out on earlier funding and have questions, please email us at info@transportationlaw.net.
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WHAT IS HOT SHOT TRUCKING? AKA HOTSHOT TRUCKING
Modern business is all about strict timelines. Whether your field is manufacturing, extraction, retail, or research and development, your operations are bound to rely on activities that operate in tandem. The most minor of supply shortages can throw these activities off, potentially costing you thousands of dollars just for a few hours' delay. Success thus hinges on your ability to right the ship as quickly as possible after a supply shortage arises.
Industries We Serve
Modern day hot shot trucking provides the speed and exclusivity you need to meet the most demanding and time-sensitive shipping requirements. We use every resource, avenue, and channel available to ship your freight by ground or air. Designed specifically to address supply and distribution problems that arise without warning, hotshot trucking tactics involve coordinating a network of carriers in a variety of locations. By calling on the vehicles closest to your supply or distribution points, hotshot brokers can fill any sudden gaps in your supply network almost as soon as they happen. This minimizes the disruption to your business and allows you to quickly return to ordinary operations, weathering the storm without skipping a beat.
Automotive
The automotive supply chain already has significant challenges. Don’t let malfunctioning equipment stop the production line. Step on the gas with HotShotTrucking.com’s suite of services that will get you back in the fast lane. With HotShotTrucking.com, companies are devising shipping strategies to swiftly deliver critical parts and equipment — whether it's ground expedite service with sprinter vans, box trucks and 53-foot tractor trailers or air freight and air cargo.
Aviation & Aerospace
Every moment a commercial airliner sits on the ground, it costs an airline money. Expedited freight services by HotShotTrucking.com can get you back in the air with prompt delivery of parts and equipment throughout North America. We are equipped with the expertise to navigate the complexities of shipping jet engines and other types of loads, and our network of hot shot drivers has extensive experience transporting aviation assets.
Construction
One shipping delay can snowball and cause delays throughout your entire project. You need an experienced 3PL provider who understands the construction industry and has the logistical reach to deliver your freight on time, anywhere. That 3PL partner is HotShotTrucking.com. Whether in the air or on the ground via truck and trailer, we can connect companies to expedited freight services for the prompt delivery of parts and equipment throughout North America.
Mining & Metals
From cranes to chemicals to excavators to conveyor belts, HotShotTrucking.com has the experience and industry know-how required for shipping sensitive, oversized, and hazardous equipment. Third-party hot shot trucking and logistics providers such as HotShotTrucking.com specialize in devising and implementing innovative shipping solutions, ensuring mines can swiftly return to operation. We’ll pick up your shipment, deliver it to the airport and receive it at the other end – providing hand-carried service as necessary or required.
Manufacturing
Every moment a manufacturing facility or factory sits idle costs a company money because of the high costs involved. With many manufacturers building to only just-in-time production rates, any disruption threatens parts and vehicle inventories. This is where the speed and expertise of freight services from HotShotTrucking.com can make a difference throughout the entire manufacturing supply chain. We do all the logistical legwork to find the optimal solution for your job, whether it's an exclusive air charter or expedited ground shipping.
Telecommunications
From servers to cell towers, information, voice, and data must flow to keep businesses, production, and the public online and connected. When equipment goes dark, depend on HotShotTrucking.com to get your systems flashing green again. This is where the speed and experience of trucking and freight services from HotShotTrucking.com can help. Our hot shot truck network excels at the prompt delivery of parts and equipment throughout North America.
Oil & Gas
The oil and gas industry faces challenging conditions in offshore and onshore oil rigs, often in remote locations with limited infrastructure. Don’t let oil pumps or pipelines sit idle waiting for equipment. By having the right plans, parts, people, and logistics partner like HotShotTrucking.com, you can effectively mitigate plant or pump downtime, unscheduled disruptions, and equipment failures.
Cost of Urgent Shipping
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