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Obama’s Bill to Close Safe Harbor Provisions in Section 530

Bridgette M. Miller (J.D. 2008, Denver) has published Obama’s Bill to Close Safe Harbor Provisions in Section 530: The Proposed Impact on the Motor Carrier Industry and Current Status of the Law, 35 Transp. L.J. 189 (2008).  Here is the Introduction:

In the midst of the political season, the transportation industry is focusing its attention on Senator Barrack Obama. But the attention is not only focused on his Presidential candidacy, but also on his proposed bill that would eliminate the safe harbor provisions of Section 530. As the law stands, Section 530 of the Revenue Act of 1978 permits employers to seek relief by avoiding the harsh penalties for reclassifying an independent contractor as an employee. The bill, the Independent Contractor Proper Classification Act of 2007, would eliminate the protections afforded under Section 530 and expose employers to lawsuits initiated by employees for allegedly misclassifying them as independent contractors. This Article addresses the potential impact of Senator Obama’s bill on the employer, particularly in the context of the motor carrier industry, as well as the current framework to assess the motor carriers’ classification of owner-operators as an independent contractors.


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