The Federal Court found that the four drivers were underpaid by $46,012 between 2012 and 2014. Although the bus company has since reimbursed the four workers in full, the judge fined the company $89,250 for “intentionally” misclassifying the bus driver`s employees as independent contractors. (See Fair Work Ombudsman v Eagle Tours Pty Limited [2019] FCCA 2099.) In general, a contractor is hired for a specific task, has a high degree of control over how the work is done, uses their own tools, and is responsible for the quality of the work. They submit invoices for the work done, pay their own taxes and take care of their own retirement pension. The Fair Work Ombudsman specifies whether you should be hired as an employee or contractor and notes that the difference is based on many factors, with no factors determining whether an employee is one or the other. (See Independent contractors and staff on the Fair Work Ombudsman`s website.) Classifying bus drivers as contractors and paying a lump sum meant they missed occasional charges, overtime rates, weekend and vacation penalties, as well as night and advance work. Bus drivers who fear that private companies will replace the workforce say private contractors cannot provide the quality of service that comes from knowledge of the community and relationships with students and families that have been nurtured over time. Under the 2010 Passenger Vehicle Transportation Award, drivers were eligible for $38.94 per hour on weekends and $48.68 per hour on statutory holidays. The case of the bus drivers is referred to the Court of First Instance. California`s Supreme Court on Wednesday refused to consider a case that makes it difficult to classify workers as independent contractors, leaving a state appeals court in place to enforce the law. Outsourcing can solve all these problems. Private entrepreneurs, whose main activity is the transportation of students, have a single goal: to provide the school bus service as efficiently and cheaply as possible, while ensuring the highest level of safety and reliable service.
Just as school districts are experts in providing education, private school bus companies are experts in providing transportation. School administrators see a way to save tens of thousands to millions of dollars by hiring a private transportation company. But local bus drivers, often loyal and long-time, fear the loss of wages, benefits and even jobs. They raise questions about the commitment and responsibility of the unknown bus operator traveling outside the city. Parents worry about the safety and reliability of the company they hand over their children to every morning. A recent Federal Circuit Court decision falsely classifying bus drivers as contractors highlights the problem many workers face when given inaccurate employment status. In this context, contracting is done when a school or district selects a third party, a private company, to manage and operate all or part of its student transportation services. Transport is clearly a complement to the core business of student training. Bus-related services may include route, driver management, and maintenance of the fleet of buses that transport students to and from school, sporting events and other extracurricular activities, as well as field trips. Contracts can also cover transportation services for special needs and even the provision of school buses.
As an employee, it`s important that you understand your rights, especially if an employer is trying to hire you as a contractor. If you have any concerns about your employment status, it is advisable to consult an expert in labour law. In his decision to impose the fine, the judge said the company should be penalized for discouraging other companies from believing that all bus drivers — or other workers — could be hired as contractors, regardless of the nature of their participation. Fair Work Ombudsman inspectors found that four bus drivers from a small transportation company received a lump sum of $22 per hour, even though they worked 12-hour shifts and on weekends. Three of the drivers were classified as contractors and not as employees. By entering into a contract, a school district can modernize or completely replace an aging fleet with new buses equipped at the district`s choice (within the limits of state law) without making a capital investment. It can control transportation costs and accurately forecast those costs throughout the contract period. It can protect the salaries and benefits of current employees through contractual specifications or reduce excessive employee costs by allowing the contractor to use market standards. Contractors have expertise in planning, routing and planning, which often results in more efficient service and lower costs.
In many cases, they can leverage economies of scale, coordinated services, shared facilities, and dedicated staff to improve both efficiency and outcomes. The facts about contract workers in the test are alleged employees, not contractors, based on the employer`s control over how the work is performed, whether the services are in the normal course of the company`s business, and whether the workers have an independently established role. The 2019 test was then incorporated into California labor law. The California District Court of Appeals overturned the Los Angeles County Superior Court`s refusal to obtain class certification in a lawsuit filed by former bus driver Francisco Gonzales against the transportation company. .