California lawmakers are considering a misclassification amnesty program for drayage companies that would relieve port drayage companies from liability for penalties associated with misclassification of drivers as independent contractors if the company enters into a settlement agreement with the state before 2017.
The Teamsters-backed bill stipulates the agreement would also require the motor carrier to convert independent contractor truckers to employee drivers.
The Senate re-referred AB 621 July 7 to the appropriations committee after the Assembly cleared it by a 47-29 vote. The bill originally called for a consent decree instead of a settlement agreement.
Also in port-related news, for the second time this year, a drayage company voted to join the Teamsters Union.
Eco Flow Transportation’s employee drivers unanimously voted July 8 to join the Teamsters after the company was formed in May. Private equity fund Saybrook Logistics, which also owns another area drayage company, Total Transportation Services Inc, created the company in May.
Earlier this year, Shippers Transport Express voted to join the Teamsters.