The ABCs of AB5 – How to Keep Your Freight Moving Under the New Law
AB5 goes into effect January 1, 2020. The new law codifies the Dynamex “ABC Test.”
Dynamex Decision Overview
The California Supreme Court adopted a new test for classifying workers, including truck drivers, which presumes that workers are employees. Businesses will need to prove that a given worker is actually an independent contractor (IC), not an employee.
Using the ABC Test
California mandates that firms using independent contractors prove the ICs are not, in fact, employees by satisfying ALL three of the following criteria:
A. The worker is free from hirer’s control over how the work is performed, and;
B. The worker performs work that is outside the usual course of the hiring entity’s business, and;
C. The worker is customarily engaged in a independently established trade, business, or occupation of the same nature as the work performed.
TransForce Can Help Prepare You for AB5
As North America’s leading transportation only workforce management company, we are the right partner to help you navigate AB5. We’ll move quickly to keep your freight moving, retain your drivers and develop a short and long-term plan to successfully transition your current driver structure.
Contact Lisa Mitchell, Regional Director, at 909-446-6961 or email@example.com for more information.