California Trucking Association Challenges New State Labor Law

- Trucking fleets in California are stepping up the fight against a new state labor law that opponents say would prevent thousands of motor carriers from contracting with owner-operators.

The California Trucking Association on Nov. 12 amended a federal lawsuit it originally filed in October 2018. The amendment was in opposition to California Assembly Bill 5, which will require an “ABC” test be used to determine whether a worker is an employee or independent contractor. The amendment was filed after California Gov. Gavin Newsom on Sept. 11 signed the bill into law, a move that raised the stakes for the trucking industry.

The ABC test requires that for a worker to be considered an independent contractor, the worker must satisfy all three parts: A. The person is free from the control and direction of the hiring entity, both in contract and in fact; B. The person performs work that is outside the usual course of the hiring entity’s business; and C. The person is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed.

It has been the B prong that has most concerned motor carriers, which have indicated the test makes it difficult or impossible to engage independent contractors for work.

Read more.

Related News Releases

Work Group Makes Recommendations on Specialized Transportation
SC&RA Participates in ICSA & ESTA Meetings in Munich
Report: Will Take 80 Years to Repair Bridges Across the U.S.
EEO-1 Survey Now Open; Deadline to File is May 31
Women Drivers Take on Oversize Freight at Lone Star Transportation