CLDA supports the formation of strong independent state courier associations.
Current CLDA state associations:
- New York
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!