Ohio Employment Law Update — May 2019


Driver, Motor Carrier Transport, and Exemption from the Definition of Employee

On April 3, 2019, Ohio Governor Mike DeWine signed legislation (H.B. 62) to exclude an individual who operates a vehicle or vessel when performing work for or on behalf of a motor carrier transporting property under the definition of employee in several labor and employment laws, to include the Ohio overtime law at Ohio Rev. Code Ann. § 3327.07. To qualify for the exemption, the individual must meet all of the following requirements:

  • Owns the vehicle or vessel that is used in performing the services for or on behalf of the carrier, or the individual leases the vehicle or vessel under a bona fide lease agreement that is not a temporary replacement lease agreement. A bona fide lease agreement does not include an agreement between the individual and the motor carrier transporting property for which, or on whose behalf, the individual provides services.
  • Is responsible for supplying the necessary personal services to operate the vehicle or vessel used to provide the service.
  • Is paid based on factors related to work performed, including on a mileage-based rate or a percentage of any schedule of rates, and not solely on the basis of the hours or time expended.
  • Substantially controls the means and manner of performing the services, in conformance with regulatory requirements and specifications of the shipper.
  • Enters into a written contract with the carrier for whom the individual is performing the services that describes the relationship between the individual and the carrier to be that of an independent contractor and not that of an employee.
  • Is responsible for substantially all of the principal operating costs of the vehicle or vessel and equipment used to provide the services, including maintenance, fuel, repairs, supplies, vehicle or vessel insurance, and personal expenses, except that the carrier may pay the individual the carrier’s fuel surcharge and incidental costs, including tolls, permits, and lumper fees.
  • Is responsible for any economic loss or economic gain from the arrangement with the carrier.

The law is effective July 3, 2019.

Read OH H.B. 62