Big News: The Controversial AB 5 Law Now Applies to Trucking
Back in 2019, a bill was proposed called the AB 5 independent contractor law. It was intended to regulate companies that hire massive numbers of gig workers, like Uber and DoorDash, but when the law went into effect on January 1, 2020, it radically changed worker classifications.
Millions who were previously defined as independent contractors are now considered employees. While the trucking industry was previously exempt from AB 5, the Supreme Court’s recent ruling changes everything. Now, the law applies to trucking too, sparking industry-wide frustration.
No Buts About It: The AB 5 Law Is Bad for Trucking (But not BYX)
Now that AB 5 impacts all 1099 truck drivers, the majority of trucking companies will be impacted.
The law states that to be classified as an independent contractor, three conditions must be met:
(a) The worker is free from control and direction in the performance of services; and
(b) The worker is performing work outside the usual course of the business of the hiring company; and
(c) The worker is customarily engaged in an independently established trade, occupation, or business. Read more