Commercial Goods Transportation Industry Fair Play Act

On January 10, 2014, Governor Cuomo signed into law the New York State Commercial Goods Transportation Industry Fair Play Act that went into effect on April 10, 2014. The law creates a new standard for determining whether a driver of commercial vehicles who transports goods is an employee or independent contractor.

The new law presumes that such workers are employees unless payments for their services are reported on a federal income tax form 1099 (if required by law).

In addition, they must be a separate business entity or they must be:

1. Free from control and direction in performing the job, both under contract and in fact;
2. Performing services outside of the usual course of business for the employer; and
3. Engaged in an independently-established trade, occupation or business that is similar to the service they perform.

Separate Business Entity

A legal separate business entity is a sole proprietor, partnership, corporation or other entity that meets 11 criteria under the new law. The 11 criteria appear on the back page of the fact sheet.

The law applies to all employers in the commercial goods transportation industry.