Arkansas Trucking Association

ACT 1166

Background

In 2012, the Arkansas Trucking Association Board of Directors voted to endorse a novel idea as legislation in the 2013 session of the Arkansas General Assembly. Simply put, an owner-operator should be able to obtain the same workers' compensation insurance as an employee, without jeopardizing his independent status. Secondly, a trucking company should have greater protection from an owner-operator who gets injured and files a workers' compensation claim, saying he was actually an employee.

On August 15, 2013, Act 1166 became law.

Independent Contractors

Act 1166 defines owner-operators in the trucking industry as independent contractors. This is critical to future litigation and case law.

Responsibilities of Motor Carriers

Every Arkansas motor carrier is now required to offer workers' compensation insurance to any owner-operator who executes or currently has an exclusive lease agreement with the motor carrier.

However, if the owner-operator does not have an exclusive lease agreement, the motor carrier is not required to offer coverage under this law.

The owner-operator may select to 'opt in' to coverage provided by the motor carrier. Or the owner-operator may select to remain outside coverage. Either way, this election must be included as part of the written contract.

Responsibilities of the Owner-Operator

If he/she decides to obtain workers' compensation through the trucking company, the owner-operator is responsible for paying the premiums to the motor carrier in exchange for the coverage. However, if the motor carrier chooses to pay all or a portion of the premium on the owner-operator's behalf, that is also acceptable.

The owner-operator must sign a section of the lease agreement or an addendum to an existing lease agreement that he/she was offered workers' compensation insurance and elected to either obtain coverage or elected not to obtain coverage and if not obtaining coverage, is holding the motor carrier harmless for any injuries that may occur.

The Form

Motor carriers must incorporate the opt-in/out election as part of their written lease contracts. So, an addendum to an existing contract is now required. A motor carrier may amend the lease agreement for all new contracts to include the election form.

Get form here

 

Contact Us

Arkansas Trucking Association
PO Box 3476 (72203)
1401 West Capitol Ave.
Little Rock, AR 72201

(501) 372-3462 | Phone
(501) 376-1810 | Fax

Our Mission

  • PROTECT the collective interests of trucking companies in the political and regulatory arenas.
  • PROMOTE the dynamics of trucking so that people have a better understanding of the link between America's primary freight delivery system and the standard of living they enjoy.
  • SERVE our members to help them to grow their business and their profits
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