AB5 & The State of Trucking in California: Three Months Later
It’s been three months since AB5 went into effect for the California trucking community. What has gone on in the state since then? We’re here to provide a state of the trucking industry post-AB5.
Even though the AB5 law is completely in effect, the legal battle is continuing with the original lawsuit filed by the California Trucking Association. According to FreightWaves, the original lawsuit is still moving forward due to various legal technicalities. On September 21, the Owner-Operator Independent Drivers Association (OOIDA) was made an intervenor for this lawsuit. With this decision, owner operators have more support behind them as there is still opposition to the law.
With AB5 decision going into effect just a few months ago, the trucking industry is still dealing with the fallout. According to Land Line Magazine, larger carriers that operate in California have let go of independent contractors. In another response to AB5, Logistics Management reports that trucking companies are rebranding into brokerages. It’s clear that many potential solutions are coming into the mix and changing the landscape of trucking.
For any truck driver that is uncertain about the future of trucking, going the independent owner operator route is a possible alternative to being an employee at a trucking company. These carriers have their own trucking businesses and are fully independent in their decisions on where to find freight and what to do with their operations. We have gone over what truckers need in order to become an owner operator in the state of California.
For freight brokers, it is important to comply with AB5 regulations and not use any trucking company that is in violation of the ABC rules laid out by the law. Brokers have yet another obstacle in trying to source capacity for their freight. However, platforms like DrayNow have an owner operator capacity base that chooses their own loads from the app, forming a separation between broker and carrier. This ensures compliance with AB5 for any broker using DrayNow to get capacity for their intermodal freight.
With news constantly developing around AB5, make sure to keep up with the latest from DrayNow and all players in the California trucking industry.
Ready for a new way to haul?
Download the app to get started with DrayNow.