The International Brotherhood of Teamsters celebrated the U.S. Supreme Court denying the California Trucking Association an appeal that could exempt owner-operators from becoming corporate employees. Labor groups, led by the country’s largest truck-driving union, sided with the state on a controversial AB5 law that forces independent truckers to sign on as payroll workers.
“In denying the petition of the California Trucking Association, the court will let stand AB 5, a California law meant to ensure that those who work at the beck-and-call of a company must be considered employees,” a Teamsters press release states. “The measure, which was signed into law in 2019 but hadn’t fully gone into effect, was landmark legislation for California truck drivers, particularly at the ports, who rallied with the Teamsters for years against being improperly labeled as contract workers.”
Although unethical companies may have taken advantage of vulnerable workers by treating them as independent contractors, legitimate owner-operators are being swept up in the broad measure. AB5 was approved by the California legislature in 2019 and promptly signed into law by Gov. Gavin Newsom in an effort to put gig workers on payrolls and collect taxes.
Companies such as Uber and Lyft secured exemptions through referendum only to have state courts reject the will of voters. The California Trucking Association and other organizations managed to get stays until the high court heard or denied their appeal. The nine justices declined several cases related to AB5, with the trucking association representing the last domino to fall before the Fourth of July weekend.
Some fear other states will enact copycat laws designed to end self-employment for millions of gig workers. Such is not the case for Teamsters and other labor unions, hoping to swell membership as workers are tasked with becoming employees or seeking other options.
“Finally, port truck drivers and so many others across California will have the opportunity to join together and earn a fair wage that allows them to support their families,” Teamsters General President Sean M. O’Brien reportedly said. “These companies can no longer take advantage of workers and fill their own executive pockets with unfairly earned profits.”
As Teamsters take their victory lap in anticipation of a larger membership, independent truckers face difficult decisions. Labor contracts lock in wages at a time when owner-operators and entrepreneurial-minded CDL holders can lease rigs and earn higher annual salaries. While not necessarily protected by union outfits, the ability to work with companies of their choice and enjoy flexible hours are benefits that will be missed. Teamster officials, by contrast, see the ruling through the lens of employee rights and the interests of their organization.
“Over the last decade, the California Labor Commissioner found misclassification is rampant at our ports, in construction, package delivery, and more,” President of Teamsters Joint Council 42 Randy Cammack reportedly said. “The race-to-the-bottom in trucking is going to end in California when the Teamsters help to enforce AB 5.”
Truckers may seek workarounds to AB5 or relocate to another state to maintain self-employment freedom.
Sources
https://www.prnewswire.com/news-releases/teamsters-campaign-pays-off-to-uphold-misclassification-law-protecting-drivers-301579296.html
https://teamster.org/2022/06/teamsters-campaign-pays-off-to-uphold-misclassification-law-protecting-drivers/
Leave a Comment