Regulations

Carey Independent Operators Reject Proposed Employee Model

Posted on February 9, 2012

[UPDATE 2/16/2012: Headline and sub-headline clarified to reflect status of proposal]

WASHINGTON, D.C. --- The following statement from Carey International was released exclusively to LCT Magazine Thursday morning:

"Carey Limousine L.A., Inc. and Carey Limousine S.F., Inc. (collectively, “Carey”) have operated under an independent contractor business model for many years. This model was beneficial to both Carey and its independent operators; our contractors were able to operate with the freedom of small business owners, and Carey was provided the services of the best chauffeurs in the industry.

"In recent years, however, there has been increased litigation aimed at companies that contract with small business owners to provide services. While Carey is confident that its business model conforms to California law, the companies decided that they needed to respond to the increased risk. Therefore, in January, Carey opted to move from an independent contractor model to an employee model, and to offer all of our independent operator owners the opportunity to become employees. Immediately, the response from our independent operator owners was unequivocal — and negative. Overwhelmingly, they were in favor of maintaining their businesses and continuing to provide service to Carey under their contracts.

"Carey values the professionalism and exceptional service of its independent operator owners, and we took their concerns very seriously. After careful deliberation and many conversations with them, Carey rescinded the notices of contract termination that we sent to our California independent operators, save those few that expressed their desire to become employees.

"We are grateful for our communications with Carey’s independent operator owners, and we look forward to continuing to work with them into the future."

[EDITOR'S NOTE: More information will be forthcoming when it becomes available from Carey. LCT Magazine will update developments as warranted].

Source: Diane M. Ennist, senior vice president and general counsel, Carey International

View comments or post a comment on this story. (2 Comments)

More News

Bus Permits For Jan. 21 Women's March Grows

The amount is fluid and could change, but fall far below the number for Obama's Inauguration in 2009.

Two New Jersey Bills Could Help Limo Industry

A TNC bill and repeal of the sales tax on limousine companies await Gov. Christie’s signature.

Feds Set Up Committee To Steer Automated Tech

The transportation department says it's necessary to “prepare for infrastructure needs in the coming years.”

Feds Clarify Rules For Passenger Buses And Vans

The latest guidance from the FMCSA covers hotel, employer, education, and faith-based transportation, among others.

NJ Legislators Should Support TNC Driver Fingerprint Checks

EDITORIAL: A new bill has hidden consequences for the ground transportation industry.

See More News

Facebook Comments ()

Comments (2)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - January 2017 $12.95 THE MONEY ISSUE COVER STORY: * Dashboard Helps Steer Company Finances * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close