Illinois ABC Test Challenge: Higher Risk of a Lawsuit for Trucking Companies Now

A new court ruling in Illinois might create serious problems for trucking companies that pass through the state. This decision could lead to many lawsuits against trucking companies, even if they only drive a few miles in Illinois. A trucking law firm, Scopelitis, is warning companies to be careful because of this new legal risk.

Understanding the Case and the ABC Test

The case was decided by Judge Manish Shah in the Northern District of Illinois. The judge focused on something called the B prong of the ABC test. This test helps decide if a worker is an employee or an independent contractor. While it’s well-known in California because of a law called AB5, it’s also part of Illinois law.

Scopelitis noted that the court’s decision could have a big impact, not just in Illinois. The judge ruled that there’s no minimum number of miles a truck needs to drive in Illinois for a company to be affected by the state’s law. This means any trucking company that operates in Illinois, even just a little, could be impacted.

The Truck Driver and the ABC Test Lawsuit

The main person in the lawsuit is a truck driver named Andrey Prokhorov. He worked for a company in Illinois called IIK Transport. The lawsuit includes other drivers who worked for the same company. These drivers say that IIK Transport broke the law by taking money out of their pay without asking and not paying them back for work expenses. They say this happened because the company wrongly called them independent contractors instead of employees.

Judge Shah looked at IIK Transport’s argument that the drivers didn’t work enough in Illinois to be protected by the state’s law. The judge disagreed and said that the law doesn’t set a minimum amount of work needed to be covered. This means that even companies that drive only a few miles in Illinois could be affected by the state’s law.

More Lawsuits Could Be Coming

Scopelitis is concerned that this court decision could lead to a lot more lawsuits against trucking companies that operate in Illinois. The law firm warned that even though this ruling isn’t a rule for other courts, it could still be used by lawyers in future cases. Because of this, trucking companies that work in Illinois might see a rise in lawsuits over how they classify their workers.

The ABC test is a big part of the debate over whether workers should be called employees or independent contractors. In this case, Judge Shah focused on the B prong of the ABC test to decide if it was okay for the company to take money out of drivers’ paychecks. The court found that many of these deductions were not allowed because the company didn’t get written permission from the drivers.

Court Says Drivers Are Employees, Not Contractors

One of the most important parts of the ruling was the court’s decision that the drivers were employees, not independent contractors. Judge Shah found that the drivers were doing the main work of IIK Transport—delivering freight. The drivers didn’t work outside of the company’s places of business, which included the delivery routes. Because of this, the court said that the drivers couldn’t be called independent contractors under Illinois law.

This decision was important because it meant the drivers were protected by Illinois law, which wouldn’t have applied if they were independent contractors. As employees, the drivers had protections under the law, including rules about pay and expenses.

What Trucking Companies Need to Know

This court ruling could have a big impact on trucking companies, especially those that drive through Illinois. Companies that use independent contractors might need to look at how they classify their workers to make sure they’re following the law. The ruling could also lead to more attention on how trucking companies handle pay and expenses, especially in states that use the ABC test to decide worker status.

Scopelitis pointed out that while this ruling isn’t a rule for other courts, it could still influence future lawsuits. Trucking companies that operate in Illinois should be aware of the risks and take steps to protect themselves, like reviewing their agreements with independent contractors and making sure they follow state wage laws.

This case shows how tough it can be for trucking companies to deal with complicated employment laws. As states continue to work on these issues, trucking companies need to stay informed and take action to avoid legal problems.