Page 16 - ATR 3 2013

“we’re goiNg to be the oNly state that actually allows aN owNer-
operator to haVe the same workers’ comp iNsuraNce as aN employee

aNd still be iNdepeNdeNt.”
—laNe kidd, presideNt,
arkaNsas truckiNg associatioN

The agreement went even further. which they are leased without jeopar- actually allows an owner-operator to
The ATA and the highway department dizing their independent status. have the same workers’ comp insurance
agreed that more work is needed to That’s a victory because the state’s as an employee and still be indepen-
improve commercial truck safety and Workers’ Compensation Commission dent,” he said.
freight movement in Arkansas. So an (WCC) is now consistently siding with
additional $2 million from the fee owner-operators who seek workers’ STRIke oUT
increase would be reserved for coopera- compensation benefits because they ATA was not able to pass a bill that
tive public/private programs to improve claim to have functioned as employees, would have made it illegal for shippers
highway safety and freight movement in even if they signed a certificate of non- to require carriers to sign anti-indem-
Arkansas. coverage at the time they leased to the nification contracts. Routinely, large
Arkansas State Senator Keith motor carrier. The WCC has accepted shippers are requiring motor carriers
Ingram (D-West Memphis) reviewed the argument that an owner-operator is to hold them harmless for any damage
the plan and agreed to sponsor the effectively controlled by the carrier and the shippers cause the motor carrier’s
legislation, called the “Commercial displays the carrier’s name on the side equipment or employee, no matter how
Truck Safety and Education Fund Act of of the truck, even though that’s a fed- egregious the negligence might be.
2013.” eral requirement. A bill introduced by Sen. Jeremy
Act 1176 passed both houses of the Once a single driver wins that Hutchinson (R-Benton) would have
Legislature despite the objections of claim, the commission then can force ended the practice, but it didn’t get
many Republicans over what amounted the carrier to pay a workers’ compen- out of committee thanks to opposition
in their opinion to a tax increase. sation tax on all its owner-operators. from utilities, energy companies, and
Indeed, this was the only tax increase Meanwhile, the Department of Americans for Prosperity, the well-
passed in the session. Workforce Services can then require funded anti-government group, which
Kidd said the ATA team explained carriers to pay withholding taxes. argued that the government should not
that, aside from the education fund, the Under Act 1166, introduced by interfere in private business contracts.
rest of the fee increase was merely to Senator David Sanders, R-Little Rock, “And so we have to reorganize
make up the $4 million difference. And and Representative Reginald Murdock and come back in two years to the
the proposal would not increase fees on (D-Marianna) carriers can give owner- Legislature loaded for bear and perhaps
any locally operated trucking company, operators the choice of opting into write it a little differently, be a little
only carriers engaged in interstate com- workers’ comp coverage, pay for it more subtle in the way that we intro-
merce. themselves, or, if the carrier chooses to duce it because we were a little bit like
“And as I’ve always seen in my 21 subsidize the payment, which can run we are sometimes – a frontal assault,
years in this association, those who about $300 per month. Self-insured and we basically didn’t make it to the
believe that somehow the big carriers companies will work with the commis- wall of the fort,” Kidd said.
don’t care about the small carriers – sion to determine their premium. If
this law showed that’s not true,” Kidd an owner operator chooses not to have IN WaSHINgToN
said. coverage, it will become part of the
lease agreement, providing protection THe eobR maNdaTe
pRoTecTINg oWNeR opeRaToRS for the trucking company if the owner While most state legislation is
aNd caRRIeRS operator ever files an injury claim as an passed every two years, the industry
The other major state legislative employee. never takes a breather from lobbying
achievement was the passage of Act According to Kidd, the arrange- Congress and federal agencies. As with
1166, which gives owner operators the ment strikes the best balance between the Legislature, the Arkansas Trucking
option of obtaining workers’ compensa- industry and owner-operator interests.
tion insurance from motor carriers to “We’re going to be the only state that 

16 arkansas Trucking reporT | issue 3 2013