Recently, many unions have put pressure on transport provider XPO Logistics Inc. for wrongly classifying its workforce as independent contractors instead of employees. Although many of the drivers who work for XPO only drive for the company full time, XPO has been classifying these drivers as contractors to avoid paying benefits.
So, if a driver got into a truck accident, who will be paying the bills?
The truck driver misclassification attorneys at Fellerman & Ciarimboli believe the trucking industry must pay drivers the compensation they deserve. By not paying benefits and insurance, XPO is not only harming the truckers on the road but are also other drivers who may be involved in any accidents caused.
Why Does XPO Logistics Misclassify Its Employees?
XPO Logistics is not doing anything that hasn’t been done before. Many trucking companies routinely misclassify their drivers as independent contractors instead of employees. But why do they do it? It all comes down to money.
If a trucker is considered an employee, employers like XPO will have to pay federal and state taxes, offer benefits, provide insurance for unemployment and workers’ compensation, and must comply with many state and federal regulations that govern working conditions, wages, and the number of hours an employee can work.
But by naming a truck driver as an independent contractor, the burden of taxes and regulations are lifted from the employer. Instead, it is the responsibility of the driver to pay his own Social Security taxes as well as FICA. The employer does not have to provide benefits or insurance for the driver. The employer can also avoid paying overtime or reimbursing the driver for any business expenses.
Are You an Employee or an Independent Contractor?
The line between an employee and an independent contractor is often confusing. Does any of the following circumstances meet your situation?