The trucking industry is facing another shift in 2025. The U.S. Department of Labor (DOL) has stopped enforcing its 2024 independent contractor rule and is moving through rulemaking to replace it.
For truckers and small fleet owners, this change could reshape how:
- Drivers are classified
- Contracts are structured
- Lenders evaluate risk
If you are an owner-operator, a first-time buyer, or running a small fleet, these new rules affect more than just legal status. They touch your financing, compliance responsibilities, and long-term business growth.
Here is a breakdown of what the rule changes mean for your contracts and financing. We’ll also highlight reactions from across the industry and show how you can prepare for the road ahead.
What Changed in the Independent Contractor Rules
The 2024 rule introduced a six-factor “economic realities” test to decide whether a worker is an employee or an independent contractor. Each factor carried equal weight, including investment, profit or loss opportunities, control, permanence, and whether the work was integral to the business.
The Trump administration’s new proposal aims to rescind that rule and move back toward standards that emphasize fewer “core factors.” In the 2021 version, the two most important measures were how much control the employer has over the work and whether the worker has a real opportunity for profit or loss.
This shift could give independent contractors more clarity and flexibility. However, because some states like California still use the stricter ABC test, not every driver will see relief.
Federal and state laws may continue to conflict, creating uncertainty for drivers who operate across multiple regions.
Industry Response to the Rule Changes
Here is how trucking associations and the courts are reacting to the proposed changes in independent contractor rules, and what that means for certainty in contracts and financing.
Support From Major Associations
The American Trucking Associations (ATA) praised the decision to rescind the 2024 independent contractor rule.
ATA President and CEO Chris Spear said the rule would have “wiped out choice, crushed opportunity, and sidelined hundreds of thousands of truckers” who choose to run their own businesses. The organization also noted that more than 350,000 professional truck drivers currently operate as independent contractors.
The Owner-Operator Independent Drivers Association (OOIDA) likewise supports preserving independent contractor status, emphasizing driver flexibility and choice. However, OOIDA has warned that proposed speed limiter mandates could still pose risks for independent drivers if enforced.
Concerns About Legal Uncertainty
Not everyone views the changes as clean or risk-free. Many carriers and drivers are concerned about regulatory whiplash, where rules shift back and forth with each administration, making it difficult to keep contracts, financing, and compliance strategies stable.
In a recent case, Colt & Joe Trucking in New Mexico challenged the 2024 rule, but a federal district court upheld the regulation. Judge Kea Riggs found it valid under the Administrative Procedure Act and rejected claims that it was arbitrary or capricious, while also ruling the carrier lacked standing to pursue other challenges.
Legal and Practical Implications for Truckers
Being classified as an employee instead of an independent contractor carries major consequences. Businesses may have to pay payroll taxes, benefits, and overtime. Contractors may lose flexibility to set schedules, choose loads, or negotiate rates.
These differences affect how you work day-to-day, how you file taxes, and even how lenders view your business.
For you, that means:
- Taxes and deductions change. Independent contractors can deduct trucking-related tax expenses, including fuel, maintenance, and insurance. Employees cannot claim those deductions in the same way.
- Contracts need clarity. Make sure your agreements clearly show who controls schedules, equipment ownership, and operational decisions.
- Documentation matters. Keep records that demonstrate you control your routes, equipment, and business choices. This protects your IC status and helps lenders understand your position.
How the Rules Affect Financing for Owner-Operators and Small Fleets
Your classification as an independent contractor can shape how lenders view your stability, what terms they offer, and whether you qualify for financing at all.
- Loan approvals and terms: Lenders judge your stability and risk profile. If reclassification raises the chance of unexpected taxes or liabilities, they may require larger down payments (20–30% instead of 10–15%) or demand additional collateral.
- Operating cash flow: Losing tax deductions or paying higher taxes cuts into disposable income. Running a realistic cost-per-mile calculation helps you plan for consistent loan payments.
- Used truck values: If fewer drivers stay independent, demand in some markets could shrink, reducing resale values for certain types of equipment.
Some lenders see independent contractors as higher risk, which can make approvals harder or terms less favorable.
If traditional banks hesitate, it doesn’t mean financing is out of reach. Mission Financial Services works with truckers every day and provides loan options designed around the realities of owner-operators and small fleets.
Scenarios to Watch
No one knows exactly how the courts and states will handle these rules, but you can plan ahead by considering the best, middle, and worst-case scenarios.
Best-Case Scenario
If the rescission goes through and holds up in court, independent contractors keep their status at the federal level.
For you, that means lenders have fewer questions about risk, approvals move faster, and you maintain flexibility to run your business your way. Financing terms stay predictable, which helps with planning long-term purchases like trucks and trailers.
Middle-Ground Scenario
The federal rule is rolled back, but states like California and Massachusetts keep stricter tests. That creates a patchwork of rules.
You may qualify as an independent contractor in most states but be treated as an employee in others, complicating how you book loads and structure contracts. Lenders may respond by requiring more documentation to show where and how you operate before approving loans.
Worst-Case Scenario
Court challenges drag on, leaving conflicting rules in place across the country. For truckers, that uncertainty means higher compliance costs, more paperwork, and tougher financing conditions.
Fleets and owner-operators may face larger down payment requirements, tighter loan terms, or reduced resale values on used trucks as lenders hedge their risk.
Conclusion
The future of independent contractor rules will directly affect how you run your business and how lenders view your financing applications.
Whether the rules stabilize, remain inconsistent across states, or drag out in court, the key is staying prepared for tighter lending standards, documentation requirements, or shifting resale values.
That’s where we can help. Mission Financial Services understands how rule changes ripple through the trucking and financing industries, and we’ve built loan programs designed for owner-operators and small fleets navigating uncertainty.
Looking ahead, the rules may change, but your ability to access financing shouldn’t. Talk to Mission Financial Services about flexible loan solutions that fit the realities of trucking or start your credit application today.
