Bills › 88th General Assembly
SSB 3144
Topics:Jobs & workersTransportation
Where it is now
- Done: IntroducedFebruary 11, 2020
- Done: SubcommitteeFebruary 12, 2020
- Done: Senate committeeFebruary 18, 2020
- Skipped: Passes the SenateContinued as SF 2296
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 2296 → Its progress continues under the new number. Go to SF 2296 What’s a funnel?
What’s in it
AI summary People who own and operate their own trucks are classified as independent contractors rather than employees. This change means trucking companies do not have to provide these drivers with workers' compensation, minimum wage, or unemployment insurance. These drivers also would not have the same rights to certain employment information or legal claims against their employers.1
Read the official explanation
This bill regards persons who are deemed independent contractors when performing services while operating certain vehicles, for purposes of certain workers’ compensation, wage, and unemployment requirements. Under Code chapter (workers’ compensation), a worker or employee is entitled to certain workers’ compensation benefits. However, the terms “worker” and “employee” do not include an independent contractor. An owner-operator who owns a vehicle licensed and registered as a truck, road tractor, or truck tractor is considered an independent contractor while performing services in the operation of the owner-operator’s vehicle if certain conditions apply. The bill defines the term “owns” as it relates to an owner-operator who owns a vehicle and qualifies as an independent contractor for purposes of Code chapter 85.23). The bill excludes from the term “employee” in Code chapters 91A (wage payment collection) and 91D (minimum wage) an owner-operator performing services while operating their vehicle who qualifies as an independent contractor under the bill. By operation of law, an employer is exempt from certain wage payment collection requirements and minimum wage requirements as it relates to non-employees. Furthermore, under Code chapter 91B, such non-employees are not entitled to certain rights regarding access to information and bringing certain claims against employers who release information. The bill also provides that an employing unit, as defined in Code chapter (employment security and unemployment compensation), shall not be deemed to employ an owner-operator performing services while operating their vehicle who qualifies as an independent contractor under the bill. By operation of law, an employing unit is exempt from certain unemployment compensation requirements as it relates to persons it does not employ.
Senate subcommittee
Named February 12, 2020. On February 13, 2020 it recommended passage.
- Sen. Michael Breitbach R
- Sen. Waylon Brown R
- Sen. Giddens
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary Senate File 2296 would automatically classify certain vehicle owner-operators as independent contractors rather than employees. The fiscal impact on the Unemployment Insurance Trust Fund cannot be determined because the total number of owner-operators and the amount of benefits they receive are unknown. The bill would not have a significant fiscal impact on the operations of the Iowa Department of Workforce Development.3
Read the fiscal note
Description
Senate File 2296 automatically classifies owner-operators of specified vehicles as independent contractors when performing services while operating the vehicle.
Background
While the total number of owner-operators is not known, the Iowa Department of Workforce Development (IWD), through the work of the Audits and Misclassification Units, identified 745 individuals in FY 2018 and 149 individuals in FY 2019 for a total of 894 individuals as owner-operators who are classified as employees and not independent contractors under current law. The employers of those individuals contribute approximately $300,000 annually to the Unemployment Insurance Trust Fund.
Independent contractors are exempt from unemployment insurance requirements under Iowa Code chapter 96.
Assumptions
- Information is not available on the total number of owner-operators in Iowa.
- Information is not available on the amount of unemployment insurance benefits that is paid to owner-operators each year.
- Wage and benefit modifications for individuals resulting from the change cannot be estimated.
Fiscal Impact
The net fiscal impact of SF 2296 on the Unemployment Insurance Trust Fund cannot be determined since the number of owner-operators is unknown and the amount of unemployment insurance benefits paid to owner-operators is also unknown. Because wage and benefit modifications for individuals resulting from the change cannot be estimated, the fiscal impact of possible wage and benefit changes cannot be determined. The Bill would not have a significant fiscal impact on the operations of the IWD.
Source
- Iowa Department of Workforce Development
- Final Fiscal Note – Vehicles, Owner Defintion · June 17, 2020
- Vehicles, Owner Definition · February 24, 2020
- Vehicles, Owner Definition · February 24, 2020
Family tree
88th General Assembly