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AB5 Update

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California Assembly Bill 5 has been extremely scrutinized by carriers and truck drivers alike. It originally took effect in January of 2020, however its full reach and implementation still remain ambiguous. There is a great deal of skepticism as to how (and if) it will be enacted, along with the scope of its impact. According to coverage on the bill, AB-5 was originally designed to regulate employment among gig companies like DoorDash, Lyft, and Uber. Despite initial intention, AB-5 subsequently affects the relationship between owner-operators and carriers. To what extent this impact will have remains to be seen, but the implications draw the ire of those it would most affect. At the end of the day, speculation has been widespread on the application of AB-5- but we’re left with even more questions nearly 3 years removed from its initial enactment. Where along the process is AB-5, and what’s next for the controversial bill?
Over the discourse of its parameters and precise implementation, the main notion in question is still when will AB-5 be enforced? Simply put, no one truly knows. It was just a few brief months ago that California truckers were faced with some career-altering decisions when it looked like AB-5 would be hindering their ability to make a living. The bill would make it financially feasible for thousands of California truck drivers and the families they support. However, the Supreme Court recently failed to take up the matter. In doing so, they extended the eventual hearing on the bill as it relates to the trucking industry. With October 11 being the deadline for a renewed motion to be filed, there is at the very least a buffer on when AB-5 will take full effect and truckers need to readjust (or abandon) their operation. The preferred outcome of this renewed motion is to strike down the bill’s impact on owner-operators. This news buys nothing more than time for those affected, as well as another opportunity to prove the disastrous impact AB-5 will have on truckers across the state. By keeping tens of thousands of drivers in their current roles, we keep the supply chain ready for the next swing in the freight market when capacity will once again be in high demand.