For decades, the trucking industry has relied on owner-operators (OO) and independent contractors (IC) to transport goods across the U.S. The utilization of OO/IC offers a solution to the fluctuating demand for freight transportation and provides an opportunity for drivers to have autonomy over the services they offer. In recent years, new legislation pertaining to employment status classification has been introduced in various states which threatens the eligibility of drivers to work as OO/IC. Based on these legislative actions, it is important to understand the role of OO/IC in the supply chain.
In response to the prospect of new laws that govern the classification of OO/IC and their employment status, the American Transportation Research Institute (ATRI) Research Advisory Committee (RAC) prioritized a study that examines the role of OO/IC in the supply chain and identifies potential impacts should these laws be enacted and expanded. This ATRI research seeks to better understand the existing role of OO/IC in the supply chain and the impact that labor classification laws could ostensibly have on drivers. To achieve this objective, this research identifies the underlying motivations and concerns relating to driver classifications, in addition to providing background on the legal landscape that is redefining the eligibility standards for OO/IC. A key research task was a truck driver survey that identified motivating factors that lead drivers to become OO/ICs and how they perceive reclassification efforts. This, in turn, allowed the research to quantify the potential impacts that might result from reclassification efforts.
Read the study here.
