FEBRUARY 2000
Vol. VI No. 2
COMPENSATION
NEWS
MONTHLY REPORT
OWNER-OPERATOR TRUCKER IS
INDEPENDENT CONTRACTOR
This newsletter usually only deals
with cases that have gone to the
appellate court. However, this case is
so significant that it is presented
before the appeal.
given to three judges for this decision.
The defendants in these cases were
transportation services companies. The
plaintiffs were owner-operators who
drove trucks owned by the owner-
operators for the trucking companies.
The trucking companies contracted
with owner-operators who would haul
for them and would enter into a Lease
and Subhaul Agreement with
Independent Contractor. It specifically
states that the intent was to create and
independent contractor relationship
and not that of employee-employer.
Drivers who entered this agreement
placed a decal on the side of the truck
with the name of the company they
were driving for and the ICC permit
number under which the company
operates.
The driver would report to a dispatch
window to acquire a load to haul. The
driver could accept or reject the load. A
price list for the particular load would
be available for the owner-operator to
determine if they would accept or reject
the load.
The owner-operator could provide a
certificate that they had insurance
coverage. The owner-operator could
elect to obtain insurance for cargo loss,
workers' compensation, and liability
and physical damage from the
defendant. The owner- operator
authorized the defendant to advance
these costs which would then be
subtracted at the time of settlement for
the loads they hauled. Health
insurance or other employee benefits
were not supplied. There was a safety
program which inspected the trucks.
The owner-operator was responsible
for their own truck repairs. There was
no withdrawal from checks for taxes
or social security.
These judges reviewed the cases of
Borello & Sons and SCIF V.
BROWN. They found those cases
provided little guidance. The judges
looked at the issues of control, right to
discharge at will without cause,
distinct operation or business, supply
of tools, etc, before determining they
were independent contractors.
ALBILLO and
MONTOYA V.
INTERMODAL
CONTAINER
SERVICE et al.
Even though this is a Superior Court
case, the workers' compensation case
(LAO 75473) was joined with the
Superior Court case by order of the
Workers' Compensation Appeals
Board (WCAB), stipulation of the
parties and order of the Superior Court.
This was a class action suit that was
CONTENTS
ALBILLO and MONTOYA V.
INTERMODAL CONTAINER
SERVICE etal. ...................... 1
Editor: HARVEY BROWN
Firm: SAMUELSEN, GONZALEZ,
VALENZUELA AND SORKOW
Phone: 310 831-0872
Address: 350 West 5th Street # 105
SAN PEDRO, CA 90731
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