44-503c. Employment status of an owner-operator of a motor vehicle; definitions.
44-503c
44-503c. Employment status of an owner-operator of amotor vehicle; definitions.(a) (1) Any individual who is an owner-operator and theexclusive driver of a motor vehicle that is leased or contracted to a licensedmotor carrier shall not be considered to be a contractor or an employee of thelicensed motor carrier within the meaning of K.S.A. 44-503, and amendmentsthereto, or an employee of the licensed motor carrier within the meaning ofsubsection (b) of K.S.A. 44-508, and amendments thereto, and the licensed motorcarrier shall not be considered to be a principal within the meaning of K.S.A.44-503, and amendments thereto, or an employer of the owner-operator within themeaning of subsection (a) of K.S.A. 44-508, and amendments thereto, if theowner-operator is covered by an occupational accident insurance policy and isnot treated under the terms of the lease agreement or contract with thelicensed motor carrier as an employee for purposes of the federal insurancecontribution act, 26 U.S.C. § 3101 et seq., the federalsocialsecurityact, 42 U.S.C. § 301 et seq., the federal unemployment taxact, 26U.S.C. § 3301 et seq., and the federal statutesprescribing income taxwithholding at the source, 26 U.S.C. § 3401 et seq.
(2) As used in this subsection:
(A) "Motor vehicle" means any automobile, truck-trailer, semitrailer,tractor, motor bus or any other self-propelled or motor-driven vehicle usedupon any of the public highways of Kansas for the purpose of transportingpersons or property;
(B) "licensed motor carrier" means any person, firm, corporation or otherbusiness entity that holds a certificate of convenience and necessity, acertificate of public service, aninterstatelicense as a common or exempt carrier from the statecorporationcommission or is required to register motor carrier equipment pursuant to 49U.S.C. § 11506; and
(C) "owner-operator" means an individual who is the owner of a single motorvehicle that is driven exclusively by the owner under a lease agreement orcontract with a licensed motor carrier.
(b) Notwithstanding any other provision of this act, a licensed motorcarrier may by lease agreement or contract secure workers compensationinsurance for an owner-operator, otherwise subject to the act by statute orelection, and may charge-back to the owner-operator the premium for suchworkers compensation insurance, and by doing so does not create anemployer-employee relationship between the licensed motor carrier and theowner-operator, or subject the licensed motor carrier to liability undersubsection (d)(1) of K.S.A.44-5,120 and amendments thereto.
(c) For purposes of subsection (b) of this section only, "owner-operator"means a person, firm, corporation or other business entity that is the owner ofone or more motor vehicles that are driven exclusively by the owner or theowner's employees or agents under a lease agreement or contract with a licensedmotor carrier; provided that neither the owner-operator nor the owner'semployees are treated under the term of the lease agreement or contract withthe licensed motor carrier as an employee for purposes of the federal insurancecontribution act, 26 U.S.C. § 3101 et seq.,the federal social securityact, 42 U.S.C. § 301 et seq., the federal unemployment taxact, 26U.S.C. § 3301 et seq., and the federal statutes prescribingincometaxwithholding at the source, 26 U.S.C. § 3401 et seq.
History: L. 1998, ch. 75, § 2;L. 2003, ch. 124, § 6; July 1.