California worker classification bill signed into law


Mike

Well-Known Member
Staff member
As expected, California Gov. Gavin Newsom signed into law a recent bill aimed at preventing businesses from misclassifying workers in the state.

The state senate on Sept. 11, approved Assembly Bill 5, which codifies the California Supreme Court’s decision in the controversial Dynamex case. Newsom signed the worker classification bill into law on Wednesday, Sept. 18. He had previously pledged to do so.

“Assembly Bill 5 is landmark legislation for workers and our economy,” Newsom wrote. “It will help reduce worker misclassification – workers being wrongly classified as ‘independent contractors’ rather than employees, which erodes basic worker protections like the minimum wage, paid sick days and health insurance benefits.”

 

Lots of lawsuits to follow, as well as businesses shutting down if the lawsuits fail.

OOIDA supports this, although many owner operators are likely to be put out of business in the state of California due to this law. Only option, really, is to get their own authority now which just isn't an option for all owner ops.

Very disappointed to see OOIDA supporting this.
 
California’s contractor law has steep implications for trucking: Here’s what your fleet needs to know

What you need to know: Though not specific to trucking, the law could have major ramifications for fleets and owner-operators who work in the state — including those that aren’t based in California. Trade groups have warned over the past 18 months that A.B. 5 — and its genesis court case, Dynamex vs. Superior Court — could effectively be an end to the traditional owner-operator contracting model, in which an owner-operator works under the authority of a larger motor carrier.

“Everybody needs to be up to speed and know that the laws in California have changed,” says Chris Shimoda, head of government affairs for the California Trucking Association. “You need to be consulting either your in-house counsel or outside counsel and paying attention to what trade associations are putting out there in terms of information.”

 
funny you say that!!! many states follow the commies!!! it will be interesting to see who follows this crapola

I don't think any will, but if they do, it will turn the trucking industry upside down unless they can manage to get a waiver (which they failed in California). Owner operators leased to carriers, lease purchase drivers, all getting an ugly wake up call in California as we speak.

And sadly, many of these folks spent a ton of money over the past few years upgrading their equipment to conform to California's emissions laws. Now, they won't be able to drive their truck.
 
Very disappointed to see OOIDA supporting this

It doesn't sound like they support it. They're just not that worried about it. Maybe they had someone actually read it and it's not as bad as it's made out to be? :dunno:

The Owner-Operator Independent Drivers Association isn’t predicting a doomsday scenario but is watching the situation closely.

“In trucking, the concern is that it might be difficult for many owner-operators and motor carriers to comply with (the B factor) requirement,” OOIDA wrote in a letter to its California members. “At this time, we think that’s a premature assumption. However, should this new law negatively impact legitimate independent owner-operators, rest assured OOIDA will challenge it in every way possible.”
 
They are in support of the law.

As a matter of fact, they seem to be stuck in the 70's. In defense of the bill, which is now law, they refer back to doing things the way they were done before regulation, when a truck owner signed on as an employee of the company. Basically, you leased your truck to the company, then hired on as a w2 employee. Nothing like going backwards in time....

As a w2 employee, you better hope they are paying per diem, otherwise, your $63/day meal deduction is now gone.
 
It doesn't sound like they support it. They're just not that worried about it. Maybe they had someone actually read it and it's not as bad as it's made out to be? :dunno:

Here it is:

As the nation’s largest trade association representing the rights of all drivers, it’s simply impossible for OOIDA to oppose this legislation because it appears to be good for drivers

 
Better hope this disease doesn't spread outside the border of California.
oh, but it will....just like nearly all the EPA laws regarding anti-pollution devices on vehicles.

my new car was built in KY, and has ALL the CA emission's for up here in New England. i ain't even sure if you can get a non-CA emission's vehicle these days.
 
They are in support of the law.

You are fake news.
😡
Probably because you're listening to fake news from your girlfriend (KR).
:laugh:

As @Duck quoted...

The Owner-Operator Independent Drivers Association isn’t predicting a doomsday scenario but is watching the situation closely.
“In trucking, the concern is that it might be difficult for many owner-operators and motor carriers to comply with (the B factor) requirement,” OOIDA wrote in a letter to its California members. “At this time, we think that’s a premature assumption. However, should this new law negatively impact legitimate independent owner-operators, rest assured OOIDA will challenge it in every way possible.


Just because OOIDA hasn't requested an injunction and filed lawsuits doesn't imply 'support' for AB5.
All opinions from OOIDA simply state that the implications are yet to be determined and that the association is closely monitoring the implementation of the new law.
 
You are fake news.
😡
Probably because you're listening to fake news from your girlfriend (KR).
:laugh:

As @Duck quoted...

The Owner-Operator Independent Drivers Association isn’t predicting a doomsday scenario but is watching the situation closely.
“In trucking, the concern is that it might be difficult for many owner-operators and motor carriers to comply with (the B factor) requirement,” OOIDA wrote in a letter to its California members. “At this time, we think that’s a premature assumption. However, should this new law negatively impact legitimate independent owner-operators, rest assured OOIDA will challenge it in every way possible.


Just because OOIDA hasn't requested an injunction and filed lawsuits doesn't imply 'support' for AB5.
All opinions from OOIDA simply state that the implications are yet to be determined and that the association is closely monitoring the implementation of the new law.
Did y'all get a new cat that latched onto yer bony azz, an' dragged ya in here?
 
I may be missing something but how could this hurt O/Os? Are you saying companies will choose to just use company drivers in California to avoid any issues this new law may cause them?
 
I may be missing something but how could this hurt O/Os? Are you saying companies will choose to just use company drivers in California to avoid any issues this new law may cause them?
What California is doing is to remove your ability to drive as a 1099 lease operator, or sole proprietor leased to a carrier, as I understand it. You either are a W2 employee, or you have to get your own authority.
 
It'll affect the leased on drivers more than anyone. Since they do the same work as company drivers.

Independent drivers usually pick up freight for brokers who don't drive their own trucks or directly service customers who don't drive their own trucks.
 
What California is doing is to remove your ability to drive as a 1099 lease operator, or sole proprietor leased to a carrier, as I understand it. You either are a W2 employee, or you have to get your own authority.
By even further reducing the number of trucks that can legally operate in their state, they're driving up the costs of shipping goods in and out of the state and basically putting economic sanctions on themselves. I guess they want to be just like their ideological carbon copies in North Korea.
:biglaugh:
 
Here it is:

As the nation’s largest trade association representing the rights of all drivers, it’s simply impossible for OOIDA to oppose this legislation because it appears to be good for drivers

You are fake news.
😡
Probably because you're listening to fake news from your girlfriend (KR).
:laugh:

As @Duck quoted...

The Owner-Operator Independent Drivers Association isn’t predicting a doomsday scenario but is watching the situation closely.
“In trucking, the concern is that it might be difficult for many owner-operators and motor carriers to comply with (the B factor) requirement,” OOIDA wrote in a letter to its California members. “At this time, we think that’s a premature assumption. However, should this new law negatively impact legitimate independent owner-operators, rest assured OOIDA will challenge it in every way possible.


Just because OOIDA hasn't requested an injunction and filed lawsuits doesn't imply 'support' for AB5.
All opinions from OOIDA simply state that the implications are yet to be determined and that the association is closely monitoring the implementation of the new law.

They are supporting, or at least were, and basically saying owner operators should just go back to the 70’s, lease your truck to the company and hire on as a w2 employee.

It is what it is. OOIDA is on the wrong side of this.
 

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