PUBLISHED: July 30, 2022 at 5:05 a.m. | UPDATED: August 1, 2022 at 4:34 a.m.
The imminent imposition of AB 5 on the trucking industry triggered the recent shutdowns at California ports, including Oakland.
AB5 codified the employee classification test under the landmark 2018 Dynamex decision. This change significantly narrows the circumstances for someone to qualify as an “independent contractor” and prohibits more than 70,000 drivers from continuing to earn a living under a model that has been allowed for decades.
While intended as a protection for all workers from misclassification, AB 5 has carve outs for approximately 100 industries and professions; trucking is not one of them.
Independent owner-operators own their trucks and contract with companies to provide transportation services. They provide vitally needed capacity at California ports while thousands of the truckers have successfully built their own companies after starting with just one vehicle.