Title 56 IDES RULES Part 2732
R-78 (05/11)
A) Example: Smith operates a truck for ABC Trucking Company. At the end of each week in which Smith has
performed services for ABC, the company furnishes Smith a check, accompanied by a statement itemizing
the licensing and operational expenses for which Smith is being reimbursed, including wear and tear on
Smith's truck. Section 212.1 does not exempt the services Smith performs for ABC from the Act's
definition of "employment."
B) Example: Adams operates a truck for XYZ Trucking Company, which furnishes Adams with a company
debit card Adams may use to purchase fuel. XYZ covers all approved charges against the debit card and
does not charge them back to Adams. Section 212.1 does not exempt the services Adams performs for XYZ
from the Act's definition of "employment."
C) Example: Jones operates a truck for XYZ Trucking Company. At the end of each week in which Jones has
performed services for XYZ, the company furnishes Jones with a check. Jones deposits a portion of the
payment received from XYZ in a checking account she maintains to cover the costs of operating the truck.
Under these facts, absent any other evidence that indicates that XYZ has failed to satisfy the requirements
of subsections (e) through (k) of this Section, the services Jones performs for XYZ are exempt from the
Act's definition of "employment".
D) Example: Reynolds operates a truck for ABC Trucking Company. At the end of each week in which
Reynolds has performed services for ABC, the company furnishes Reynolds with a check, based on a flat
per mile fee. There is no indication that any portion of the fee is intended as a separate reimbursement to
cover any costs directly associated with operating or licensing Reynolds' truck. Under these facts, absent
any other evidence that indicates that ABC has failed to satisfy the requirements of subsections (e) through
(k) of this Section, the services Reynolds performs for ABC are exempt from the Act's definition of
"employment".
E) Example: Smith operates a truck for ABC Construction Company. At the end of each week in which Smith
has performed services for ABC, the company furnishes Smith with a check, based on an hourly fee for his
services. There is no indication that any portion of the check is intended as a separate reimbursement to
cover any costs directly associated with operating or licensing Smith’s truck. Under these facts, absent any
evidence that indicates ABC has failed to satisfy the requirements of subsections (e) through (k) of this
Section, the services Smith performs for ABC are exempt from the Act's definition of "employment".
F) Example: ABC Trucking Company pays for a customized paint job for the truck of any driver who drives
over 1,000,000 miles for it without an accident, as long as the driver owns the truck. While technically, the
cost of painting a truck may be considered an operating cost, the principal purpose of the payments in this
case is not to reimburse the driver for operating costs but to reward his or her safe driving record. Under
these facts, absent any other evidence that indicates that ABC has failed to satisfy the requirements of
subsections (e) through (k) of this Section, the services the driver performs for ABC are exempt from the
Act's definition of "employment".
2) Paragraph (1) of this subsection does not apply where federal or State law or regulation requires that the costs of
licensing or operating the truck, truck-tractor or tractor be paid by the person or entity to which the individual
operating the truck, truck-tractor or tractor is contracted to perform the services.
j) Section 212.1(a)(6) of the Act
1) Section 212.1(a)(6) is not satisfied unless:
A) the individual performing the services offers or advertises his or her services to the public; and
B) the individual performing the services maintains his or her own business identity.
2) Compliance with subsection (j)(1) can be demonstrated by the individual displaying his or her name on the
truck, truck-tractor or tractor, or otherwise.
