Route 280 East Sign for Harrison NJ with Turnpike
In many states, owner-operator truck drivers are independent contractors and thus not covered by the trucking company they are hauling for. In New Jersey, however, an owner operator is considered an employee of the trucking company they are working for.
New Jersey uses two tests to determine whether a person is an employee of a trucking company or an independent contractor. The first test is the “right to control test”. The second test is the “relative nature of the work test”.
Under the “right to control test”, an analysis is made as to whether the person hiring had the right to direct the manner in which the business or work shall be done as well as the results accomplished in order to determine if the person hiring is an employee.
Under the “relative nature of the work test”, an analysis is made as to whether the work performed by the person hired was an integral part of the regular business of the defendant and whether the person hired demonstrated substantial economic dependence of the company hiring him or her.
New Jersey also takes a case by case approach to determining whether a person is “in the course of employment”. In New Jersey, an employee is deemed to be in the course of his employment when the employee arrives at the place of employment to report for work and ends when the employee leaves the place of employment. See New Jersey Statute Annotated 34:15-36.
In one of the leading cases discussing “owner-operators”, the New Jersey Appellate Division in Tofani v. LoBiondo Brothers Motor Express Inc, 83 N.J. Super 480 (1964), an “owner-operator” entered into a lease agreement with LoBiondo Brothers Motor Express (LoBiondo), a trucking company, whereby he leased his tractor to the company for use in its trucking business. The lease agreement provided that LoBiondo had exclusive possession, control and use of the tractor for the duration of the lease and the “owner-operator” could not haul for anyone else during the lease period.
The New Jersey Appellate Division panel who reviewed the case found that under the “right of control test” that the LoBiondo owned the trailer and the exclusive possession of the “owner-operators” trailer that LoBiondo was an employee and not an independent contractor. The panel of judges also noted that LoBiondo didn’t own a trailer and could not haul cargo on his own and was working exclusively and on a regular basis for LoBiondo. There was also an indication in the opinion that LoBiondo, who employed Union Drivers, was using “owner-operators” to circumvent hiring additional Union drivers. See also Pickett v. Tryon Trucking, 214 N.J. Super. 76 (App. Div. 1986) a more recent decision that reiterates the holding in Tofani v. LoBiondo.