California Trucking Association Challenges New State Labor Law
(November 20, 2019)
- 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.