Nevada is the 37th state to adopt a rule to prohibit unfair clauses in trucking contracts.
Gov. Brian Sandoval signed into law a bill to do away with indemnification clauses in contracts. The clauses are set up to protect shippers or hold them harmless from anything that happens with a shipment.
The new rule takes effect Oct. 1, 2013.
Advocates for the change say that truck drivers doing business in states that have yet to act have little or no choice but to accept the unfair terms.
“This bill is about making sure the little guy is not told by the big guy ‘You’re going to pay for my errors,’” Sen. James Settelmeyer, R-Minden, told lawmakers before the final vote.
Other states to act this year to change rules on indemnity clauses include neighboring Idaho and Utah, as well as Montana and Arkansas. A full list of states and the laws where protections are in place is available.
Affected contracts in Nevada are defined as a contract, agreement, or understanding between a motor carrier and a shipper covering the transportation of property for hire by the motor carrier, entry on property to load, unload or transport property, including the storage of property.
The protection excludes intermodal chassis, containers, or other intermodal equipment.
To view other legislative activities of interest for Nevada, click here.
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