New California Law Aims to Gather Info on Independent Contractors
California is hoping to track down parents who are delinquent in child support payments by gathering information on independent contractors
California is hoping to track down parents who are delinquent in child support payments by gathering information on independent contractors.
A new law, part of sweeping legislation aimed at "deadbeat" parents, requires businesses to report specific information regarding independent contractors to the state’s Employment Development Dept.
The law was effective Jan. 1 and applies to any business or government entity (defined as a "service recipient") required to file a federal Form 1099-MISC for services performed by an independent contractor. An independent contractor is defined as an individual who is not an employee of the business or government entity and who receives compensation or executes a contract for services performed for that business or government entity in or outside of California. Many trucking companies that use independent contractor truck owner-operators will be affected.
California-based businesses must report all independent contractors, regardless of where they live or work. Businesses based outside the state must report all independent contractors "deriving trade or business income from sources within the state." According to Warren Hoemann, of the California Trucking Assn., that includes owner-operators contracted and paid out of California terminals, but not carriers or owner-operators who simply run through the state.
Reports aren't required for service providers that are businesses themselves, such as corporations, general partnerships or limited liability companies. In general, said EDD, reports are only required for service providers who are individuals working as independent contractors, i.e. independent contractors who are sole proprietors.
Required information includes the contractor’s name, social security number, address, start date of contract, amount of contract, and contract expiration date.
Reports are due within 20 days of making payments totaling $600 or more, or within 20 days of entering into a contract for $600 or more, whichever is earlier. The penalty for failure to comply within the required time is $24 per day. Additional information, including reporting forms, can be obtained on the Internet at www.edd.ca.gov or by calling (916) 657-0529
More Drivers

FDA Eases Path for Oral-Fluid Testing
Federal actions could advance oral-fluid drug testing for truck drivers, but lab certification delays and marijuana rescheduling questions remain.
Read More →
Why Hiring Truck Drivers Is Getting Harder
Higher recruiting costs, a shrinking driver pool, and renewed pay competition are raising the stakes for fleets heading into 2027.
Read More →
Roehl Offers Truck Drivers $10,000 Retention Incentive
Payments begin after the first load and continue in mileage-based installments for eligible experienced drivers joining the fleet.
Read More →
Platform Science Adds Dispatch and Safety Tools
Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.
Read More →
When Language Stops the Truck: The Return of ELP Out-of-Service Orders
English language proficiency rules for commercial drivers aren’t new, but renewed out-of-service enforcement has raised the stakes. Here’s what carriers need to know before a driver reaches a roadside inspection.
Read More →
Samsara Launches Custom AI Agent Builder
Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.
Read More →
Trucker Path Expands Reserved Parking Network
Trucker Path has added close to 6,000 more truck parking spaces to its Trucker Path Reserved Parking Network with the addition of Safe Truck Parking.
Read More →
EEOC Sues Texas Trucking Company Over Driver Age Limits
The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.
Read More →
Nussbaum, Roehl Announce Second Driver Pay Increase This Year
This year has seen a swath of major truck driver pay increases as freight capacity has tightened.
Read More →
From One Generation to the Next: How Mentorship Builds Safer Truck Drivers
After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.
Read More →
