Oregon Employment Department Adopts Administrative Rule to Address Independent Contractors Issue

OTA was recently made aware that the Employment Department has adopted a new administrative rule dealing with independent contractors or owner operators as we more commonly refer to them.  The rule prohibits a for hire motor carrier or a company affiliated with a for hire motor carrier from selling or leasing a vehicle to a person and then entering into a lease with that person to provide services for the for hire motor carrier.  New Rule   

Debra Dunn, OTA President, said that this is a very serious problem as it is a long standing practice within the trucking industry for carriers to sell equipment to drivers and then lease the equipment back to provide transportation services on behalf of the carrier.  Debra further indicated that the OTA Board of Directors has been notified of the situation and have an action plan to address the issue.  Watch for future articles in the Express providing updates on this issue.  If you have any questions or comments please direct them to Debra at dunn@ortrucking.org, at 503/513-0005 or toll free at 1-888/293-000