By Timothy Dooner | 30 June 2022
FREIGHT WAVES — AB5 goes into effect — While this ain’t corona or monkeypox, it’s a death blow to independent trucking in California. FreightWaves’ John Kingston has been following this case since the start; unfortunately he didn’t harpoon his white whale. Kingston reports, “AB5 is now set to go into effect in the California trucking sector, as the U.S. Supreme Court on Thursday denied certiorari in the appeal that represented the California Trucking Association’s last-ditch effort to keep the independent contractor law away from its operations.”
“This is a world in which the trucking industry has never seen. The ABC test isn’t just something in the body of civil law. It is codified. I will say that over the years I’ve seen industry trade groups claim the apocalypse when new regulations are handed down. And the apocalypse doesn’t come. The B prong in the California trucking sector might test that theory.” — FreightWaves’ John Kingston
Breaking news breaking trucking — Back The Truck Up’s Rooster reports, “That means AB5, the controversial law forcing employers to treat independent contractors as hired employees if they serve the same primary function, is now active.” What’s especially problematic for trucking is the B prong of AB5’s ABCs. According to Kingston, “The B prong says a worker can be an independent contractor if he or she ‘performs work that is outside the usual course of the hiring entity’s business.’ An independent owner-operator hauling freight for a trucking company faces the probability that in litigation, that activity would be found in violation of the B prong.” […]
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