Trucking industry leaders struggle with possible nationwide implications of CA’s AB5 compliance
California’s controversial AB5 law is no stranger to the discussion. The law puts into effect an independent contractor test, essentially barring companies from hiring independent contractors for work that directly matches the operations performed at that company. Owner-operators in the state of California are becoming barred from work unless they agree to become employees, instead.
There are broader implications to this rule, though. Many fear that other states or even a federal law may be put in place to mirror California’s ruling. Many experts claim that such an act would not only put all trucking owner-operators out of business, but would also create a slower supply chain, further shipping challenges, and a more expensive bottom line for everyone - from shippers to the customer.
Two years ago, California lawmakers quietly passed a complex energy bill that transformed how residents are billed for electricity.