Insights - October 2016 - 13

Owner-Operators - from page 11 The Court of Appeals interpreted the statute to include the owner-operators' drivers under the definition of "services performed in operation of the motor vehicle," and, therefore, the exemption applied to the hired drivers as well. In Market Transport, Ltd. v. Employment Department, Market Transport was operating with independent contractors that either personally operated their trucks or leased their vehicles from third parties. The Court noted this common industry practice while reversing the ALJ's decision as to assessments to Market Transport for independent contractors who operated their own vehicles. With respect to Market Transport's drivers that leased their vehicles from third parties, the Court vacated the ALJ's decision and sent the issue back for further proceedings as to whether those drivers "furnished" or "maintained" their vehicles under the statute and, therefore, qualified for the exemption from employment. The ALJ's decision with respect to contractors that operated their own vehicles was that those contractors were not exempt from employment under Oregon law due to a lack of specific consideration in the applicable agreements for the period in which the vehicle was not in use. The Court reasoned that even when the vehicle was idle, Market Transport was still required to maintain and pay for operating licenses, taxes, and insurance, and those Trucking Software continued obligations were, in fact, consideration. In May Trucking Company v. Employment Department, the Court of Appeals reversed, in part, tax assessments imposed with respect to May's owner-operator drivers who owned their trucks outright. May's fleet included approximately 200 owner-operator drivers. Seventy of those drivers either leased or purchased their vehicles from May, and then leased those vehicles back to May by agreement. The remaining 130 drivers owned their vehicles outright, and also leased their vehicles back to May by agreement. Based on "the documents [i.e., agreements] under which the contract drivers were leasing or purchasing their vehicles from May," the Court of Appeals affirmed the ALJ's determination that the drivers who leased or purchased their vehicles from May were not exempt from employment. In effect, the agreements between drivers leasing vehicles from May did not provide the drivers with any "transferrable interest" in the vehicles. Similarly, the agreements between drivers purchasing vehicles from May expressly provided that the "purchase" was a "bailment only" until the purchase price was paid in full. Relying upon Oregon case law providing that furnishing "their equipment" to a for-hire carrier requires a transferrable interest in the vehicle, the Court of Appeals easily found that May's lease and purchase agreements failed to create such an interest for the owneroperator drivers. The drivers who owned their vehicles outright Business Software for Intermodal Trucking Companies of All Sizes Harbor Drayage Rail Drayage Multi-Modal Trucking "Trinium is a vital part of our Total Logistics Solution. The TMS is an integral piece of our multi-faceted operation and effectively interfaces with our other internal and external systems." Call (310) 214-3118 to schedule your one-on-one demo today or email sales@triniumtech.com Bob LaMere, CIO East Coast Warehouse & Distribution | www.eastcoastwarehouse.com www.TriniumTech.com/Trucking October 2016 | Intermodal Insights 13 http://www.TriniumTech.com/Trucking http://www.eastcoastwarehouse.com

Table of Contents for the Digital Edition of Insights - October 2016

Insights - October 2016
Commerce Responds on Chinese Truck Tires
NVOs Granted Protection Under Hanjin Protocol
At EXPO IANA Celebrates Growth Amid Challenges
2017 Board of Directors Election
Changes Proposed to IANA Bylaws
UW–Superior Lives Up to Its Name at EXPO
Hertwig Presented with the 2016 Silver Kingpin Award
Oregon Cases Offer Lessons for Use of Owner-Operators
Sustainability News
Freight Reports
Port News
People in the News
2016 Sponsors
DOT Issues Policy on “Automated” Vehicles
IANA Member Webinar: A Close Look at IMTS
In Brief
Welcome New Members
Intermodal Calendar
Insights - October 2016 - Insights - October 2016
Insights - October 2016 - NVOs Granted Protection Under Hanjin Protocol
Insights - October 2016 - Changes Proposed to IANA Bylaws
Insights - October 2016 - 4
Insights - October 2016 - UW–Superior Lives Up to Its Name at EXPO
Insights - October 2016 - 6
Insights - October 2016 - Hertwig Presented with the 2016 Silver Kingpin Award
Insights - October 2016 - 8
Insights - October 2016 - 9
Insights - October 2016 - 10
Insights - October 2016 - Oregon Cases Offer Lessons for Use of Owner-Operators
Insights - October 2016 - 12
Insights - October 2016 - 13
Insights - October 2016 - Sustainability News
Insights - October 2016 - Freight Reports
Insights - October 2016 - 16
Insights - October 2016 - Port News
Insights - October 2016 - People in the News
Insights - October 2016 - 19
Insights - October 2016 - 2016 Sponsors
Insights - October 2016 - IANA Member Webinar: A Close Look at IMTS
Insights - October 2016 - 22
Insights - October 2016 - In Brief
Insights - October 2016 - 24
Insights - October 2016 - Welcome New Members
Insights - October 2016 - 26
Insights - October 2016 - 27
Insights - October 2016 - Intermodal Calendar
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