The California Supreme Court Dynamex case has been construed as eliminating independent contractors in California. AB 5 represents proposed statutory law aimed at codifying the Dynamex ruling as part of our statutory law. Various industries, including the motor carrier industry, are lobbying for “safe harbors” in AB 5 to protect the ongoing status of independent contractors. The California Trucking Association is leading the way for the motor carrier industry in this respect.
We are advised that any decisions as to the language to be included in AB 5 must be made by September 13. There is some chance that CTA, and other proponents, will succeed in inserting language in AB 5 promoting the ongoing role of owner-operator truck drivers. We all hope this will be the result.
But, what if protective language for owner-operators in trucking is not included in AB 5? That is a possibility. We do not think that California intends to do away with independent contractors altogether. Instead, we think there will be a way going forward to utilize owner operator truck drivers. Some planning and changes in the owner-operator model may be required, but doomsday is not around the corner if AB 5 does not include the carve-out language being propounded by the trucking industry. If you have any questions or concerns about transportation-related laws, please do not hesitate to contact us.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (Photo credit: 123rf.com)