Making sense of new CA law AB5

I tend to think this is a good thing. I'm no fan of regulation, but any regulation that injures mega trucking is usually good for the little guy, such as myself, and I suspect many of you.. Megas have been selling, company drivers and newbies, O/O dreams for over 20 years.

These megas work those poor souls until they break or bankrupt them. Holding the American Dream just out of reach with endless clauses and payments. All of the responsibilities and none of the benefits of owning your own truck. Beholden to the mega while they pay the Leasee 60-70% plus (maybe) FSC and the mega keeps 30-40% for a trailer, dispatch, and billing. Can't imagine there is even company driver pay left after its all said and done. The Leasee is giving up all of his margin just to drive "their own truck".

Maybe I'm wrong. I've never been willing or needed to buy into the Mega promise. However, very few people I've encountered are willing to put up money to a stranger and not benefit exponentially.

 

So if this were to be adopted by other states as well. What happens to companies like landstar and mercer who doesnt employ any company drivers ?

 

While some of the details on AB5 I tend to disagree with. Overall, I think it's a good thing. Problem it solves is that many who are 'classified' as independent contractors, in reality are company employees. And, by being classified as independent contractors they too often get the shaft. The companies make out at the expense of the drivers and that's what this works toward fixing.

 

Omg, all they have to do is form a company, llc is fine, have the contract in the name of the company and make the owner an employee, stops the issue with this crap.

 

is S corp fine Inc. or do it have to be llc

 

If im not mistaken, they had stopped leasing on anyone in those states......

 

It can be anything except a sole proprietorship, you have to be an employee of your company and it removes the contractor status because you are an employee.

 

Anybody see this killing out the o/o unless you have your own authority

 

Is it a fact that a business can be hired to perform the same tasks as the business that is hiring them? The “B” part seems pretty clear that you can’t hire a non-employee to perform the same functions as your primary business.

 

You are correct-a-mundo.