Owner-Operators and S863

What Does It Mean for Trucking in New Jersey?

What is Bill #S863 (formerly S4204)?

New Jersey Legislative Bill S863 addresses the potential reclassification of independent contractors in New Jersey. The new bill would write into law that employers in New Jersey use the “ABC” test to determine whether a driver should be classified as an employee or an independent contractor.

One of the provisions of the “ABC test” could potentially upend the trucking owner-operator model. The test asserts that a trucking company could not hire an independent owner-operator or a driver on lease and consider them a contractor, effectively preventing these companies from using independent carriers. The bill is closely mirrored to AB5 legislation that the state of California enacted in 2018, which also uses the three-prong approach to classification.

What Does This Mean for Trucking in New Jersey?

In addition to the potential reclassification of independent contractors, New Jersey recently passed Legislative Bill S1790, which in an effort to protect workers, holds shippers liable for wage disputes arising between drivers and motor carriers. The penalties include fines, damages and additional costs. Stricter penalties, including jail time, could be enforced for companies with continuous misclassification.

Is Best Transportation Affected by S863?

Best Transportation is not affected by this legislation in any way, and this change will not affect the flow of our customers’ containers. Best Transportation does not use Owner Operators/Independent Contractors and never has. 100% of our drivers are company employees with full benefits and proper taxes paid.

If you have any questions regarding the legislation, feel free to call us at 973-833-5277.

Why Choose Best Transportation?

In business since 1982, Best Transportation is located directly in the Port of NY and New Jersey in Port Newark with easy and fast access to all terminals. We also service the Ports of Philadelphia and Baltimore and deliver in the Northeast.

With the most modern fleet in the Port of NY and NJ, our trucks and equipment are company-owned and meticulously maintained. We own hundreds of 20’, 40’ and 45’ chassis, including tri-axles. We are receiving additional brand new 2020 Volvo day cabs this month.

  • We treat our team with the respect, compensation and benefits that they deserve. Our professional, tenured drivers average over 10+ years of experience each.
  • You can enjoy peace of mind knowing that your freight is protected. Our onsite container yard is highly secure, fully lit with CCTV, 24/7 surveillance and room for 300+ containers.
  • With our state-of-the-art software with track and trace, full-time on-site dispatchers and dedicated customer service associates that are experts in communication and reporting, we keep our customers fully informed as to the safe, secure and on-time delivery of all containers. Your cargo is monitored at all times, as we track your loads as well as empties at your facility. Best Transportation customers do not incur per diem and demurrage charges.
  •  Best Transportation’s expertise in drop and hook is second to none. We have over 125 new and newer trucks, the average age of our fleet is 3.5 years, fully equipped with Omnitracs, GPS tracking, ELD’s and two-way dash cams.
  • With a full-time Safety & Compliance Director and an onsite shop with full-time mechanics to maintain our fleet, our operation is safe and secure.
  • Committed to sustainability, Best Transportation received SmartWay’s 2019 High Performer status. We are proudly the only drayage carrier in our region to have achieved this status.

Best Transportation has the capacity, the equipment and the drivers to support your business and provide first-class on-time delivery. We’ve been in contact with all of our current clients to assure them that Best Transportation is not in any way affected by this legislation. If you are looking for a fully compliant drayage provider or have questions about the legislation, please contact us.