Looking to talk about AB5 in California

Yes It does away with 1099 owner operators and it will in effect make it very difficult to run any business in calif as a sole proprietor that works for another business. As I understand it you will have to incorporate or do an LLC and pay yourself as an employee. But I think the up side is the price for my service industry wide will increase I see it making it more expensive to operate and will keep the low ballers from saving money by screwing drivers with ####ty lease purchase and by the load hauling then 1099 them saving money by not paying workers comp or payroll taxes. I see us being able to raise rates and make more and pay my guys more. Dump truck drivers on prevailing wage off hauling are paid less than 20.00 hr thats less than the flag man if you are an on site hauling the prevailing wage is over 60.00 hr an owner operator will work this job and charge about 100.00 hr for labor and truck if I put a driver on this same job I bill about 190.00 hr This whole deal is being pushed by the unions and I think they have won in court to pay mixer drivers the 60.00 hr from the time they load to the time they return to the batch plant instead of the off haul rate and they want to do the same with all trucking that is delivering to a prevailing wage job.

 

I am not sure how they are getting away with that off site stuff. we have davis bacon wages here, which is basically the same as prevailing wages, but we are paid while driving the truck, to and from the jobsite we are working on, it is certified payroll and monitored pretty close.

 

Disclaimer: I’m not in CA but this will probably end up spreading

I own my truck. I’m leased onto a company using his authority. He has no idea what I do on a day to day basis because I pull a trailer that belongs to the guy that dispatches me. I’m not even remotely close to being an employee of the guy I’m leased on to. If this spreads were going to have DOT numbers up around 7 million.

 

there are so many 1099 jobs in los angeles, and all major cities of california. all of the drivers are working for low wages too I assume.

 

Calif is screwed up in many ways this loophole is being dealt with finally, yes we have Davis Bacon hear also but have been using said loophole to save money on trucking

 

Word from a few people, is that Schneider has been not renewing or taking on ca based IC’s.

 

At least we there will be no more no more drivers trying to lease a truck at $1000 a week for $1.00 a mile in the state of California...cr england, swift, john christener.

 

Thats not a big deal at all.

 

I doubt it.

 

I do too, at least I hope not. We kind of have some laws as far as 1099 deals go. They are still operating, but have to work at it some to be legal, and it sometimes screws the truck owner if he gets a bad driver.