For those of you familiar with AB5 in California, the Pro Act is the Federal version of it. Last night, the Pro Act passed the house and has moved on to the Senate. This was mostly a party line vote in the House, which leads many to believe that it won't make it through the Senate. That said, there were 5 Republican votes for the Pro Act, so it's not truly Dead On Arrival in the Senate.
Keeping this in the transportation world, what does this mean? If it were to pass....
Lease-Purchase: Each carrier that has lease purchase drivers may or may not provide options for truck purchasing, though they would not be bound to this. Virtually every lease purchase deal has an option available for the truck owner to cancel the lease purchase deal at any given time without any specific cause for lease termination. Even if you did have an option to buy the truck, unlike AB5, you would now have nowhere to take the truck to lease to another carrier. You would have to get your own authority because...
Leased To Carrier: This now becomes a thing of the past. For an owner operator leased to a carrier, you only option outside of starting your own authority would be to find a carrier that is willing to lease your truck from you, and hire you as an employee to drive it. At this point, you are no longer a business, merely a w2 employee with some sort of responsibility to a truck and maybe a trailer still.
What about the single truck carrier hauling dedicated to just one, maybe a couple brokers with dedicated freight? This could knock that out as well.
Dispatching services, from the way I am reading this, would be done as well.
This also puts an end to the many contracted delivery services out here that truck drivers probably don't pay much attention to. Delivery services for Amazon and others.
Again, the odds of this passing the Senate, at this time, are slim. Slim, but possible. That said, even if it gets shot down, it's not dead. We will see this again.
I'm posting this in the news area, not the politics, so those who need to be concerned about this can discuss ideas and options going forward if this becomes a reality.
If this affects your business, what would be your plan going forward?
With that, I will leave you with Biden's thoughts on the matter.
As an FYI, plan on warnings and thread bans if you try to turn this into a Political party bashing thread. Stick to the topic.
Keeping this in the transportation world, what does this mean? If it were to pass....
Lease-Purchase: Each carrier that has lease purchase drivers may or may not provide options for truck purchasing, though they would not be bound to this. Virtually every lease purchase deal has an option available for the truck owner to cancel the lease purchase deal at any given time without any specific cause for lease termination. Even if you did have an option to buy the truck, unlike AB5, you would now have nowhere to take the truck to lease to another carrier. You would have to get your own authority because...
Leased To Carrier: This now becomes a thing of the past. For an owner operator leased to a carrier, you only option outside of starting your own authority would be to find a carrier that is willing to lease your truck from you, and hire you as an employee to drive it. At this point, you are no longer a business, merely a w2 employee with some sort of responsibility to a truck and maybe a trailer still.
What about the single truck carrier hauling dedicated to just one, maybe a couple brokers with dedicated freight? This could knock that out as well.
Dispatching services, from the way I am reading this, would be done as well.
This also puts an end to the many contracted delivery services out here that truck drivers probably don't pay much attention to. Delivery services for Amazon and others.
Again, the odds of this passing the Senate, at this time, are slim. Slim, but possible. That said, even if it gets shot down, it's not dead. We will see this again.
I'm posting this in the news area, not the politics, so those who need to be concerned about this can discuss ideas and options going forward if this becomes a reality.
If this affects your business, what would be your plan going forward?
With that, I will leave you with Biden's thoughts on the matter.
As an FYI, plan on warnings and thread bans if you try to turn this into a Political party bashing thread. Stick to the topic.