New Bill Threatens an End to Utilizing Independent Contractors
Bill AB5 aims to shake up motor carriers’ relationships with owner-operators.
Bill AB5, passed California’s General Assembly in July, is heading to the state Senate. The bill expands upon the Supreme Court case of Dynamex Operations vs. Superior Court of Los Angeles. If accepted, the legislation would prevent companies from using independent contractors as they do today to move freight. Within the trucking industry, carriers would not be able to utilize owner-operators as independent contractors. Since this model is extremely common, the new bill poses a threat to the livelihood of carriers and drivers alike.
Several industries, including real estate licensees, healthcare workers, accountants, and lawyers, have requested exemptions from AB5 when it becomes law. However, no carve outs have been made to date for the trucking companies, and it is unlikely they will get a full exemption. Carriers may also be responsible for retroactive violations up to four years before the law is instated.
TransForce can help you navigate your options.
- We hire the former independent contractors as TransForce employees so you don’t have to
- We manage recruitment, payroll, benefits, risk and safety
- We retain WC and UI liability/exposure for our employees
Contact us today and we’ll help you find the best solution to keep your freight moving.
For more information, contact Lisa Mitchell, Regional Director, at 909-987-6989 ext. 910 or firstname.lastname@example.org.
This post was adapted from an article by Over Drive.