Bean counters figured it out contractors are cheaper than employees with benefits. ROCKET SCIENCE!
This could be a win-win for the employees who figure out how to really make this work and execute.
Owner operators always seem to be in trouble with the IRS. They loose out in the end.
And the lawyers undoubtedly figured out that the litigation risk in the company lay largely in driving trucks around.
Best to lay that off closest to the person driving said truck. Makes them safer, too, because people take less risk with their own stuff.
When you are a worker on a 1099 contract, YOU get to pay the entire Soc Sec & Medicare deductions from your pay. You also have to file deposits every quarter with the IRS for your taxes.
The 7.65% deductions as an employee becomes 15.30 % as a contractor. You may also have to get a business license & follow other rules in your area.
Getting out ahead of attempts to unionize them under the next Democrat administration.