State Associations

State associations help us defend our industry.‎

Many customized logistics and delivery businesses face significant threats at the state level. Regulatory and ‎legislative bodies in all 50 states can set policies which make doing business a challenge for many in our industry. ‎Many state governments are moving, or have already moved, to undercut the economic conditions which lead to ‎growth and success for businesses like ours. As individual entrepreneurs and business owners, we must join ‎together to defeat these challenges at the state level wherever possible.

The threats we currently face are significant.‎

In particular, our industry’s use of Independent Contractors (ICs) is attracting opposition from many corners. ‎Roughly 80% of same-day ground deliveries in the US are made by the myriad of Independently Owned and ‎Operated Courier companies which, in turn, rely on tens of thousands of Independent Contractor Drivers. This ‎proven business model allows us to conduct our successful operations, while providing livelihoods to ICs and ‎significant contributions to local economies. But the use of the IC model is now under fire on several fronts.‎

State governments, looking for creative ways to bolster sagging revenues, are attempting to legislate the ‎elimination of ICs from many business models. Some state legislators believe that if they can force companies to ‎make these IC’s actual “employees,” by passing laws to outlaw ICs, they can then collect additional payroll taxes. ‎The same tactic is being considered at a federal level for collection of new and additional federal taxes from your ‎business.‎

Some insurance companies are also opposed to the use of ICs and may see a potential new revenue stream in the ‎reclassification of ICs as employees. If a company’s drivers were suddenly required by law to become employees, ‎then the company owner would be responsible for insuring those drivers. In a pool of twenty drivers, for example, ‎the insurance company could take the driver with the worst record and base their rates for the entire company on ‎that driver’s performance.‎

Labor unions are suffering from declining membership and lower dues revenues. Some union leaders believe that ‎they may be able to increase their membership numbers and boost dues revenues by targeting ICs and the ‎companies who use them. Under the current IC business model, union leaders cannot approach IC drivers with the ‎goal of organizing them. Should laws be passed eliminating the IC business model and requiring those drivers to ‎be hired as payroll employees, it would be open season for labor unions to attempt to organize those employees.‎

Collectively, or individually, these threats – from legislatures, insurance companies or unions – could devastate ‎our industry as we know it. But there is a way to protect our right to use the IC model.‎

The CLDA works tirelessly to defend the customized logistics and delivery industry.‎

CLDA leadership has been vigorously working to educate Congress about the importance of preserving the ‎IC business model for the customized logistics and delivery industry. While we have met with some success, it is ‎imperative that we include more voices to bring the message to all of our elected officials at both the federal and ‎the state levels.‎

We need to make sure that our elected officials at the local, state and national levels understand who we are, how much of a demographic we represent. Our elected leaders need to know we represent tens of thousands of ‎votes nationwide, with our choices in the voting booth and campaign contributions directly tied to how they vote ‎on issues affecting our livelihood.‎

For years, the leadership of the CLDA has been working diligently to pursue these legislative goals in our nation’s ‎capital. But recent events have made it essential to expand our efforts through business owners like you who must ‎carry the torch at the local and state level.‎

Our industry needs strong state associations to help protect us from misguided lawmakers. ‎

When the Maryland State Legislature became the first lawmaking body to vote to outlaw the use of Independent ‎Contractors, the CLDA reacted immediately. CLDA sent representatives to Maryland to fight this ‎legislation before it could be finalized by the Governor. By educating Maryland lawmakers about the ‎contributions of our industry and the importance of maintaining the IC model, the CLDA was able to have same ‎day courier companies exempted from the potentially disastrous legislation. The success of this effort led the ‎CLDA to adopt as a goal the establishment of state associations in all fifty states. ‎

By establishing state associations for the express purpose of building professional relationships with local and ‎state lawmakers who have the potential to drastically affect our livelihoods, the CLDA’s broader national ‎membership network can develop a strong defense against legislative overreach. For more information on how you ‎can get involved, contact CLDA!‎