TransForce Announces AB5 Dedicated Solutions Program for Motor Carriers
TransForce Announces AB5 Dedicated Solutions Program for Motor Carriers
TransForce hires independent contractor drivers as employees; relieves burden for carriers
ALEXANDRIA, VA – TransForce, a leading provider of innovative driver shortage solutions, today announced a program for carriers that relieves the burden and cost of hiring their independent contractor drivers.
With TransForce Managed Workforce Solutions, carriers can transition contractor-based driving operations to a W-2 workforce model supported by TransForce in response to California Assembly Bill 5 (AB 5). Drivers are employed by TransForce and dedicated to a specific carrier, helping reduce classification-related risk while maintaining operational continuity.
This approach also allows drivers to continue operating their own equipment while working as TransForce employees.
Passed into law in 2019, AB5 is a law that restricts businesses from classifying workers as independent contractors, forcing companies to shift classification of these workers to employees. On June 30th, 2022, the injunction protecting owner operators and the motor carriers who utilize them was lifted. From this day forth in California, motor carriers must comply with AB5 law or risk costly penalties up to $25,000 per infraction.
AB5 unintentionally affects independent contractor truck drivers in California by making it difficult, if not impossible, for them to work for themselves. As a result, motor carriers must now evaluate their existing business model to ensure they are compliant in how they employ these owner operators.
The TransForce AB5 Dedicated Solutions Program transitions a motor carrier's independent contractors to full-time TransForce drivers dedicated to that carrier's company. TransForce hires the independent contractors as TransForce employees, which means the company handles everything from ongoing recruitment, payroll, and benefits, to risk and safety management. TransForce provides only the safest, most qualified drivers, and the company maintains Driver DQ files to ensure each carrier client meets DOT and FMCSA regulations. In addition, when a carrier’s owner operators become TransForce employees, the company also assumes responsibility for workers’ compensation and unemployment insurance.
“By partnering with TransForce, carriers can quickly transition their workforce model and reduce the risk associated with worker classification, helping them keep trucks moving and deliver goods to consumers throughout California,” said Dennis Cooke, TransForce President and CEO. “TransForce can support these transitions in a matter of days, helping carriers minimize disruption and maintain operational continuity.”
For more information about the TransForce AB5 Dedicated Solutions Program, click here.
About TransForce
TransForce leads the industry in innovative driver shortage solutions. The company leverages its TF1 app to access a digital network of CDL-licensed drivers to match them in real-time with top trucking jobs. TransForce works with third-party logistics, private fleets, and trucking companies to provide drivers in a way that best meets partner business needs, from temporary flex workers to full-time hires. The company’s solutions drastically reduce time-to-hire and keep more trucks on the road. TransForce operates throughout the U.S. and Canada. Additional information about the company can be found at transforce.com.