Making sense of new CA law AB5

It's pretty hilarious. You can operate there as an O/O or a lease op as long as you don't live there.

 

Is mercer a trucking company or a brokerage company?

 

Just seen a guy post that his company he lease to will not be going to cali. I think they have like 300 plus trucks. Said all company drivers or lease guys was stopped as of the 12yh I think. He went like 1 once a week.

 

California hates truck drivers, it was obvious before it but this is the nail in the coffin.

 

@Ridgeline is correct...Its the old 2 check system that would become more common for O/Os... Lease your truck to the company on a 1099, AND hire on to said company as an employee to drive your truck and be paid on a W2.

 

That’s good in theory as long as they don’t start treating you as an employee.

 

The fact that California allows a huge exemption to Uber, Lyft, Doordash and the like because of passage of prop 22 in November of 2020
makes a total mockery of the entire issue.

Exempt Job Categories Under California's AB5 Law

 

That makes no sense, because if this was the case, you can’t have any independent businesses doing any work that your company already preforms to help your business.

I read the roofing example as part of this madness, you have a roofing company, you have work to do but are falling behind so you ask another company to help put and fill in the gap to get work done, now this is illegal under California law.

by the way there are three points that have to be met, one of them isn’t defined, the control portion.

 

I'm glad to see the scummy lease purchase deals be tossed but I'm nervous about the "leased on" operators that own their truck being ran extinct

 

Under that system you were a employee and you had a equipment lease. They also paid benefits and company share of taxes. Some were teamsters with their own trucks.