Leaders from the California Business Roundtable, California Retailers Association and California Trucking Association discuss the recent AB 5 decision and the devastating impact it will have on truckers and the supply chain.
“AB5 codified the employee classification test under the landmark 2018 Dynamex decision. This change significantly narrows the circumstances for someone to qualify as an “independent contractor” and prohibits more than 70,000 drivers from continuing to earn a living under a model that has been allowed for decades.
“As stakeholders at the frontlines of the goods-movement crisis, we do not support additional disruptions to California’s already strained supply chain. However, we understand the predicament that thousands of owner-operators find themselves in as enforcement of AB 5 on the trucking industry is imminent. Truly, what could be expected from these owner-operators who see their livelihoods on the line?
“Our associations, along with more than 70 other organizations including manufacturers, agricultural associations and local entities, recognize the vital role of independent truckers. We submitted a letter to Gov. Newsom imploring him to lead on this issue that not only impacts California, but the entire nation.”