Bill Mongelluzzo, Senior Editor
Feb 17, 2016 5:47PM EST
The recent decision by Hub Group to discontinue its employee-based drayage operation in Southern California is the latest event in a tug of war between the independent contractor model of trucking and the employee model that is likely to continue for some time to come and the result will impact costs for shippers.
Drayage companies nationwide, and especially in California, face increasing pressure from state and federal regulators to re-classify their owner-operator drivers as employees. So-called misclassification lawsuits, some filed by drivers on their own, some supported by the Teamsters union, have resulted in a handful of companies shifting to the employee model.