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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Unintended Consequences Of California Law AB5

07/15/2022

State law AB5 was enacted to classify drivers of ride-share and delivery vehicles as employees instead of independent contractors.  The law directed to specific group of workers, but the impact has extended to truckers. As an unintended consequence AB5 has affected owner-operators of trucks critical to the movement of containers from the ports of Los Angeles and Long Beach to their final destination.

 

To protest AB5, owner-operators carried out a work stoppage on Monday, July 11th, intensifying problems relating to port congestion.  The law has been contested at the state and federal levels.  At the end of June, the U.S. Supreme Court referred a petition from a California trucking association back to the U.S. Court of Appeals for the Ninth Circuit.  Strict implementation of AB5 has the potential to deprive as many as 50,000 independent owner-operators of their livelihood and could cripple port operations.

 

The labor action has now ended but the unintended consequences of the law have yet to be resolved


 
Copyright © 2024 Simon M. Shane