US Court Ruling May Take 70,000 Truckers Off Road, Spur Jams
AB 5 FAQ
Seems Completely Pointless.
California Owner Operators....some new US Court Ruling....
Discussion in 'Ask An Owner Operator' started by Val_Caldera, Jul 2, 2022.
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It may be worth going to cali now as a owner op with own aurthority. Maybe rates will rise in the area.
Another Canadian driver, armo, Bean Jr. and 5 others Thank this. -
85% of the 8500 container moves daily in NJ are independents but the state wants the millions of unemployment and other taxes the are shorted over this 'miss-classification'.
There is more, the whole 'GIG' ecconomy is now at stake. Many non-trucking individuals are also independent contractors. Cali already went after the journalists and pod-casters and many other 'piece work' gigs.
This will limit many lucrative options for a large amount of people, like single mothers, that could benefit from a side gig.
Any individual who owns his own truck, grossing 6 figures, who lives here, registers his truck, maintains and pays fuel taxes and tolls, etc. to this state is never going to drive a carrier's truck for $25 - $35 an hour.
The company I retired from had 75 owner operators doing around 30,000 imports a year. No way they could be replaced in a week; so the port productivity drops from 8500 containers a day to 1400 - 1500 and SLOWLY grows as more carriers, if they still have the business, add those trucks and drivers they can find.
How long before our freight goes to Halifax or someplace where ABC is not recognized.
The current adminstration has already indicated they may attempt to take this a federal law...
Not pointless...more like " from those that make to those that need"...now where have I heard that before?Another Canadian driver, Coffey, Bean Jr. and 2 others Thank this. -
Cali was just really missing out on the money that they can give to those who really need it (sarcasm), I think they could care less about how you were classified. It's a money thing, plain & simple.
Last edited: Jul 2, 2022
Another Canadian driver, Coffey, Vampire and 4 others Thank this. -
Honestly i aint going to reward this type of behavour taking my truck in. Let em burn from their own moronic choices.Another Canadian driver, Domingo101, Coffey and 8 others Thank this. -
funny thing the Oilfiled went through this a few years ago. Cost them a lot of money for preying on people.Another Canadian driver, Vampire and Keepforgettingmypassword Thank this. -
Don't even listen to this nonsense. No one is going to stop you and ask to see your employee badge to make sure you're not an O/O in CA. I run an LLC and employ myself, problem solved.
Another Canadian driver, Opendeckin, wis bang and 2 others Thank this. -
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So a Cali LLC needs to have their own direct source of freight.
Leasing to another carrier fails the ABC test as you will be providing the same 'work product' as the carrier's trucks where doing freight for a shipper without transportation assets passes the ABC test...
The old IRS 20 question 'test' allows one to fracture those functions like we had company LTL and box trucks running out of our warehouse but owner operators doing the pier work may have worked but the narrow ABC test took that ability away. A transportation company is unable to 'lease' trasnportation providers as the state [possibly soon the feds too] have deemed that person IS an employee. Pay up...Oh Yeah, you owe us millions in back taxes, interest and penalties too.Another Canadian driver, scottied67, D.Tibbitt and 1 other person Thank this. -
I think this is attacking those who do lease purchase, not the full blown owner ops that have their own authority. The only people that will be are those "glorified company drivers." I think they're also going after those companies that hire drivers on a 1099 like those Chicagoland companies. Someone with their own authority they won't mess with because those drivers have a the proof that they are paying taxes, have an LLC, paying IFTA, and such.
Another Canadian driver, Bean Jr., MIT and 1 other person Thank this.
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