If you thought having a Republican back in the White House would mean trucking companies that use owner-operators could breathe easy now about their independent contractor status, you could be wrong. 

President-elect Donald Trump’s surprisingly pro-union nomination for Secretary of Labor has some in trucking concerned about what this would mean for independent contractor status and other labor issues.

U.S. Rep. Lori Chavez-DeRemer of Oregon is a moderate Republican, the daughter of a Teamster, and pro-union.

As the Wall Street Journal put it, “In a reversal of the usual response to Republican cabinet appointments, the pick earned praise from some union leaders and consternation from businesses and some Republicans.”

The Teamsters union praised the pick. The union notably during the campaign refused to endorse the Democratic presidential candidate, Vice President Kamala Harris, and Teamsters President Sean O'Brien spoke at the Republican National Convention. According to Politico, O'Brien has been pushing for Trump to nominate Chavez-DeRemer.

“She’s got more labor union endorsements than any Republican I’ve ever seen in my life,” said House speaker Mike Johnson at a rally for her during the campaign, according to the New York Times. 

Trump's Labor Pick and Independent Contractor Misclassification

The American Trucking Associations expressed concern about Chavez-DeRemer’s past “anti-trucking” positions in Congress.

“We look forward to a thorough vetting and confirmation process for Lori Chavez-DeRemer, particularly on her past positions in Congress on the PRO Act and independent contractors,” said ATA President and CEO Chris Spear in a statement.

“These anti-trucking policies undermine our essential workforce, threaten the right of independent truckers to choose their own career path, and impede the efficiency of the supply chain. 

“The 8.5 million men and women who work in our industry are the heartbeat of the nation, and we reserve our support for Chavez-DeRemer's nomination until we receive greater clarity from her on these issues that are so vital to our workforce."

The PRO Act

Chavez-DeRemer was one of only three Republicans to cosponsor the Protecting the Right to Organize Act, which included language that would have made it harder for independent contractors such as truck owner-operators to retain their status as independents and not employees.

The PRO Act was first introduced in 2019, again in 2021 and again in 2023. The 2021 version added provisions to prohibit employers from misclassifying employees as independent contractors to avoid paying overtime and other benefits. 

The bill would have amended the National Labor Relations Act to change the definition of employee and require independent contractors to meet an ABC test:

An individual performing any service shall be considered an employee and not an independent contractor, unless:

• (A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact;

• (B) the service is performed outside the usual course of the business of the employer; and

• (C) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed. 

In general, for the traditional leased owner-operator model used in trucking, it is difficult if not impossible to pass all three of these factors.