AB5 Possible Solution

Discussion in 'Trucking Industry Regulations' started by Hegemeister, Aug 14, 2022.

  1. Hegemeister

    Hegemeister Road Train Member

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    Many people decide they want to RV full time. Then they need to find legal domicile for obvious reasons. What many do is establish legal domicile in South Dakota. Why? Because it's really easy and fast.
    Don't need to rent or buy a home
    Stay in state one night and qualify
    Very little cost
    Etc.
    I don't want to go into details right now, but I see this as a very viable solution for the owner operators dealing with AB5.
     
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  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    If you publicly tip people off on how to find loop holes, they'll close them.
     
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  4. vangtransport

    vangtransport Heavy Load Member

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    If everything remained the same with the exception of an address change, then it would have zero effect on the enforcement AB5. The rule applies to workers in California regardless of where the company is based. Just like the rule does not apply to California companies where an employee workers out of state.
     
    Last edited: Aug 14, 2022
  5. wis bang

    wis bang Road Train Member

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    It as discussed here when this all started; after all there are a number of companies based in PA but working the NY/NJ seaport, as well as, the Philadelphia port and Lehigh Valley railhead.

    It quickly spread on the amount of work done in each state would be the deciding factor and the amount of imports coming from NJ is considerably larger than the PA based freight so miss-classification still could be applied. Same as if you left your warehouse in NJ stand alone and moved your trucking division across the river while still working the NY/NJ port, they have the loopholes covered.
     
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  6. Hegemeister

    Hegemeister Road Train Member

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    So California is going to change the laws in South Dakota?
     
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  7. wis bang

    wis bang Road Train Member

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    New Jersey already made moves to adopt the same ABC test. More will follow.
     
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  8. Short Fuse EOD

    Short Fuse EOD Road Train Member

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    Spoken on here before, I wonder if leasing on would be set up like employee with separate equipment lease payment? Thoughts?
     
  9. wichris

    wichris Road Train Member

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    Easiest way to do it. I've had O/O's set up with us like that before so they could get group insurance and 401
     
  10. wis bang

    wis bang Road Train Member

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    A lifetime of trucking in NJ.

    They want all of the revenue they can gather so the corporate structures would be scrutinized.

    The local congrescritter, who is now hooked up with the teamsters, is looking for money AND he used to be real close to NJ MTA so he knows a lot about the system.

    Both Chem Leaman and Matlack shed close ties to the 'Tony Pro' era Teamsters by having 'fleet owners'..."wink, wink, nudge, nudge"...and those companies hired drivers with their own local union contracts and either leased their trucks to the carrier -or- leased trucks from the carrier, popped a driver in the seat and leased 'em back to said carrier. The business agent at that time is now working with the legiscritter so they do have a lot of the 'angles' covered.
     
  11. wichris

    wichris Road Train Member

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    Driver on the carrier payroll and the truck paid alone(no driver), charging the "truck" for payroll costs ect. Would be the same as the old 2 check system. Without the teamsters dictating how much the "driver" was paid you could go with the minimum wage.
    Would put an end to the lease purchase scams
     
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