PAMT CORP 10-Q

Item 1A. Risk Factors.   Except as noted below, there have been no material changes to the Company’s risk factors as previously disclosed in Item 1A to Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.   A determination that independent contractors are employees could expose us to various liabilities and additional costs.   Federal and state legislation as well as tax and other regulatory authorities often seek to assert that independent contractors in the transportation service industry are employees rather than independent contractors. An example of such legislation enacted in California will now be enforceable with respect to trucking companies following the U.S. Supreme Court’s recent decision not to hear an appeal challenging the legislation. While the Company does not expect the California legislation to have a material impact on its business, there can be no assurance that other interpretations that support the independent contractor status will not change, that other federal or state legislation will not be enacted or that various authorities will not successfully assert a position that re-classifies independent contractors to be employees. If our independent contractors are determined to be our employees, that determination could materially increase our exposure under a variety of federal and state tax, workers’ compensation, unemployment benefits, labor, employment and tort laws, as well as our potential liability for employee benefits. In addition, such changes may be applied retroactively, and if so, we may be required to pay additional amounts to compensate for prior periods. Any of the above increased costs would adversely affect our business and operating results.