Here’s to our Governor and Legislature! Always looking out for California Citizens!:
Lorena Gonzalez, former Assembly member, pushed for the law known as AB5. This law was aimed at clamping down on the so-called gig economy. The gig economy refers to people who work as self-employed persons without an employer who provides benefits and manages hours worked. Uber and Lyft drivers are classified as part of the gig economy. The other very important group that falls into the gig economy are self-employed truck drivers.
Most unfortunately, the Supreme Court turned away a challenge to California’s “radical” worker-classification law that virtually outlaws independent contracting including independent trucking. This ruling has in effect ended a temporary stay preventing enforcement of the law known as AB5. This was the second time in nine months that the Supreme Court refused to hear an appeal challenging AB5.
What is the purpose of AB5? The law, which was pushed by organized labor to clamp down on the very hard to unionize “gig” economy was enacted (in the words of supporters) to help workers by preventing their “misclassification.”
News Flash! These workers were not looking for correct classification. They were looking to work independently with no government interference.
AB5 will devastate the independent trucking industry.
70,000 California owner-operators have maybe a week to end their long-standing independent businesses.
The supply chain is already fragile. California has not provided any guidance to owner-operators about how they can work as independent contractors. Many may very well leave the state so they can earn a living. That means less trucks to bring products to California citizens.