Do You Know the Rule: Pa. Factors to Help Identify when a Truck Driver is an 'Employee'

                               

Generally, only employees are entitled to workers’ compensation benefits. Independent contractors are not. The line between employee status and IC status is a blurry one. It can be particularly difficult when it comes to truck drivers.

The table below, based on the Pennsvylania case IDI Logistics, Inc. v. Clayton, No. 514 C.D. 2021 (PA Comm’w Ct. 10/18/22), is designed to help companies understand whether their drivers are employees and thus potentially entitled to workers’ compensation benefits.

In the case, the driver sought benefits after he fell off a truck’s trailer while tying down a load of pipe and broke his wrist. The court awarded him benefits, based largely on the extent of the company’s control over the way the driver did his work, and its ownership of the trucks. This was despite the fact that the driver acknowledged signing an independent contractor agreement.

Factors indicating truck drivers’ status

“Employee”

“Independent contractor”

Company controls manner in which work is to be done
For example, the company sets a deadline for completion of deliveries. The company also may exercise control through ownership of the vehicles used by the drivers. Courts generally consider control over the manner of the work to be the most important factor in determining employee status.

Worker signed IC agreement
While this is a factor, it’s not dispositive. It’s the substance of the worker’s relationship with the company that matters.

Company has right to control work
It is the existence of the right to control that is significant, irrespective of whether the control is actually exercised.

Company doesn’t pay for meals or lodging
If the worker must pay for his own meals and hotels while on the road, that’s one sign that he may be an IC.

Company pays driver by mile
Courts consider this type of payment to be akin to paying an employee by the hour. It’s indicative of an employer-employee relationship because the company bears the risk--it must pay the worker even if the customer isn’t satisfied.

Worker determines own driving routes
This indicates the company may lack control over the manner in which the work is done. But other control factors, such as ownership of the vehicles, may outweigh it.

Company owns trucks
If the company owns the trucks the worker uses, insures them, and pays for gas, that’s an indication that the company exercises control over the driver’s work.

Worker can reject routes
If a worker is free to accept or reject specific deliveries or pick-ups, that’s an indication that the company lacks control over the manner in which the work is done. But it’s not dispositive. Other control factors may prove more persuasive.

Driver doesn’t keep truck at home when not workingThis is a factor that sheds light on the extent of the company’s control over the driver’s work.

Driver is free to work for other companiesThis is a factor that indicates the company lacks the type of control over the worker that it would normally have over a traditional employee.

Company doesn’t allow workers to use trucks elsewhereThis is a substantial factor when considering the extent of the company’s control over the driver’s work.

 

Compliance and claims-processing information from Pennsylvania and the rest of the U.S. is available on WorkCompResearch


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