InterConnect FLASH! 51 – The Motor Carrier Employer Amnesty Program of California : A Wolf in Sheep’s Clothing?

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Starting January 1, 2016, eligible motor carrier’s performing drayage services in California can apply for relief under the Motor Carrier Employer Amnesty Program of California (the “Program”). Under the Program, provided an eligible motor carrier enters into a settlement agreement with the Labor Commissioner (the “Commissioner”) and agrees to reclassify its drivers as employees, the carrier may be relieved of liability for certain statutory or civil penalties associated with its classification of the reclassified commercial drivers as independent contractors. Of course, with any government program, the devil is in the details. And, in this case, the fact that the enacted bill was born of a partnership between the California State Legislature and the California Teamsters, alone calls for a double-dose of careful consideration.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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