August 16, 2022

California Truckers Protest AB5 Legislation Reclassifying Independent Owner-Operators because Employee Drivers

‘Will likely cause several owner/operators who value the particular freedom and flexibility to be their own boss to flee the state, ‘ reports Wall Street Journal.

Truckers in Los Angeles staged presentations earlier this week protesting towards California’s AB5 law, which essentially bans independent owner-operators in the state.

Big rig drivers participating in the protest reportedly snarled traffic on Los Angeles’ 110 freeway Wed, with other protesters picketing outdoors Los Angeles ports of access against the bill they say will drive them out of company.

“ During the pandemic, we were as well busy being essential to recognize we were about to be screwed by AB5, ” a single trucker who wished to not be identified “ intended for fear of retaliation” said within a statement to trucking web site FreightWaves .

The bill had been signed into law by Gov. Gavin Newsom (D) back in 2019, however it was blocked from coming into effect following an  injunction from the California Trucking Association (CTA) in early  2020.

The CTA petitioned the US Supreme Court to review the law, but the high courtroom declined to hear the case past due last month.

More on the legal nuances of the case via multichannelmerchant. com :

The California Trucking Association (CTA) had  petitioned th electronic higher court   to review the case, asserting AB5 would certainly wreak havoc on the transport industry. The case was CTA vs . (Rob) Bonta, lawyer general for the state of California.

The ruling may impact Uber, Lyft, DoorDash and many smaller operators whose businesses are built on a event driver model. It will also likely cause many owner/operators which value the freedom and flexibility of being their own manager to flee the state. But it will surely require any out-of-state provider moving goods into California to adhere to the “ employees only” mandate.

The Great Court denied the CTA’s so-called writ of certiorari, essentially ruling in favor of the U. S. Solicitor Common. That office had recommended the court not review the decision of the Ninth Signal Court of Appeals upholding AB5. The high court’s actions removed a lower appellate courtroom injunction that was in place as the case was moving with the process, which held legislation in abeyance.

The CTA took issue with the Ninth Circuit’s assertion that AB5’s requirements are easily met and will not impact carriers or owner-operators in the state. The particular circuit court also dominated AB5 met the Faa Authorization Act (FA4) and its particular three-pronged test of the law’s impact on prices, routes and services.

“ The injunction is expected to be lifted any day now, according to the Possess Trucking Association, ” reports TruckingInfo. possuindo . “ Provisions within the bill will prevent impartial owner-operator truck drivers through contracting with other trucking businesses for services, essentially leaving trucking companies no selection but to use only worker drivers. ”

Gordon Reimer, the supervisor of one Southern California-based transportation company, said 75 owner-operators he hires to move shipping from the ports have rejected offers to make them worker drivers, and described Wednesday’s protests as a “ apparent cry for help. ”

“ It requires courage to park your own truck and take a stand against a state intent upon ending your ability to earn a living — California’s AB5 is just that, ” Reimer told FreightWaves of the protests.

“ Owner-operators are the most difficult segment of the transportation industry to try and organize — it’s like herding cats — because everyone has their very own personal gripes, ” this individual added. “ The intention of this self-serving piece of legislation is to deprive 70, 000-plus small business trucking companies of their ability to earn a living in this state. ”  

One trucking company owner told the Wall Street Journal motorists seeking to register as indie businesses could face up to $20, 000 in insurance charges.

Matt Schrap, chief executive of the Harbor Trucking Association, a trade group for Western Coast truckers, said the law will force many drivers to choose between becoming workers of trucking firms or even registering as independent companies and working with freight agents to secure loads.

Mr. Schrap said independent truckers are facing additional costs associated with $20, 000 or more, mostly in the form of increased insurance premiums.

Execution of the law would come because the nation struggles to deal with the supply chain crisis of the Biden Administration’s own making , and adds complications for truckers already having to navigate new emissions rules slated to consider effect in January 2023.

The protests are set to expand to port cities in Ca, with one three-day demonstration planned in Oakland this Monday.

Follow the author on Truth Social: @adansalazarwins






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