and some have even been contracted to provide special needs student transportation. Because the workforce at these companies is widely understood to be comprised of independent contractors, these driver-for-hire companies can only go so far in dictating the “rules of the road,” to avoid the appearance of controlling drivers. However, many of these companies request drivers
to wear a company uniform, place a company logo on their vehicle, obtain training directly from the company, and adhere to other company policies. Legally, this could constitute the requisite level of control that is necessary to establish an employer-employee relationship. The act of reclassifying independent contractors as
employees can signifcantly increase payroll—since employers now must cover things such as worker’s com- pensation, unemployment insurance and overtime pay. If forced to eliminate the schedule flexibility that ap-
peals to the gig economy worker, how will reclassification affect these company business models? Will increased costs be passed along to consumers or school districts? Legal experts have also advised that the Dynamex
decision, which has now been bolstered by the passage of AB5 is “insurmountable” in legislating against the use of independent contractors. Their opinion is that many companies that contract directly with independent
contractors are at a high risk violating the law. Moreover, it is their belief that school districts contracting with these companies could potentially also be liable as a co- employer for worker back taxes and wages.
Recommendations for School Administrators Any vendor you work with is an extension of you, the
district. Conduct a review of student transportation pro- grams and all vendor contracts to determine what changes may be necessary for compliance and risk mitigation. Speak with student transportation providers to under- stand if they work directly with independent contractors. Document their view on perceived liability as well as steps they are taking to comply with the new legislation. Know your options. Alternative student transportation providers that do not contract with companies using independent contractors to provide transportation won’t be caught up in the entanglements of the independent contractor/em- ployee issue. These companies can potentially offer school districts a proactive opportunity to mitigate potential liabil- ity relating to the co-employment issue. ●
Gregg Prettyman is chief operations officer of ALC Schools, an alternative transportation model for school districts. Contact Gregg at
Prettyman@alcschools.com.
Buck’s Since 1951
Buck’s Wheel & Equipment “We are the school bus parts specialists”
Buck’s Wheel & Equipment is your #1 source for School Bus Parts. Buck’s Wheel supplies all your major bus parts including Switches, Lights, Seats, Seat Covers, Bluebird, Tomas and also International parts. Please contact your sales representative for any further details and shipping.
Service Dept. • Collision Center • Parts Dept. • Spring Shop Serving the Industry for Over 65 Years.
5101 North Main Street Fort Worth, TX 76179
www.buckswheel.com
Bucks_0718_HH.indd 1
Phone: 817-332-1228 Toll Free: 800-792-1011
www.stnonline.com 23 6/6/18 11:08 AM
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