Still in the works in the California legislature is a bill that trucking groups say will likely kill the leased owner-operator model in the state, though time is waning for the state’s lawmakers to clear the legislation this year. According to the article from the overdriveonline.com and its author James Jaillet
“The California legislature has a little more than a week — until Sept. 13 — to pass the bill this legislative session. Otherwise, the legislation would be on hold until next year.
The bill, A.B. 5, targets the use of independent contractors (such as owner-operators who lease on to motor carriers) in the state, taking a broad swipe at worker misclassification across all industries. However, trucking groups based in the state argue its an overly broad swipe that blocks motor carriers from hiring owner-operators. The bill also threatens to upend the business models of ride-sharing companies like Lyft and Uber.
In its current form, “A.B. 5 would put…legitimate owner-operators out of business,” says Chris Shimoda, head of government affairs for the California Trucking Association.” Jaillet also wrote in his article.
Read the full story HERE