Now that the U. S. Supreme Court denied a hearing on CTA’s preemption claim, which we wrote about previously, pretty much every California carrier that utilizes owner operators is considering their options for whether and how best to use owner operator drivers in the future. There are options.
The California Appellate Court has stated that AB 5 was not intended to eliminate use of owner operator truck drivers. In People v. Cal Cartage, the court cited to the business-to-business exemption option set forth in Labor Code section 2776. There is the brokerage approach adopted by many carriers over past years which does require owner operator drivers to obtain their own operating authority and meet other specific requirements. There is also the possibility of going back to 49 CFR 376 owner operator lease agreements, with some modifications. Such lease agreements were commonly used in the past for many years. Another approach that is being widely considered is a so-called “two check” approach. It is likely that one of the available options will work for any company that needs to use owner operator truck drivers.
Chauvel & Glatt has represented motor carriers and logistics companies for many years and is well versed with AB 5 and the various options now available for continued use of owner operator drivers. To learn more about your options, contact your local transportation law attorneys at Chauvel & Glatt.
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. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500 for legal assistance near you. (Photo Credit depositphoto.com.)