AB5 Impacts Small-Business Truckers, Warns OOIDA
🚛 AB5 Impacts Small-Business Truckers, Warns OOIDA.
The Owner-Operator Independent Drivers Association (OOIDA) has voiced concerns that California's Assembly Bill 5 (AB5), intended to address the misclassification of truck drivers, has actually burdened legitimate independent contractors. OOIDA is supporting the California Trucking Association in a lawsuit against the state and has filed a brief claiming that AB5 violates the U.S. Constitution. The law's ABC Test, which automatically classifies independent contractor truck drivers as employees, is seen as disruptive to interstate commerce, leading to the termination of properly classified independent contractor businesses and reducing the pool of drivers and carriers willing to operate in California under AB5 regulations. OOIDA seeks court intervention to address these issues.
In a significant ruling, a federal judge in California rejected a challenge against the state's independent contractor law, AB5, from the trucking industry.