House endorses adopting California AB5 provisions at federal level

Discussion in 'Trucking Industry Regulations' started by shatteredsquare, Feb 26, 2020.

  1. shatteredsquare

    shatteredsquare Heavy Load Member

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    Currently in CA the law is 'unenforceable' due to a US judge deeming it BS, but it's still on record at state level.

    House endorses adopting California AB5 provisions at federal level

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    These are the 3 criteria for being an "independent contractor" vs an "employee". How do you get around the last two?? This is transportation. Everybody just moves stuff, it's all the same muffin job. Everybody does the same thing in trucker land, just differing hierarchies of financial responsibility and liability. It's literally the exact same job, top to bottom.

    Bill Text - AB-5 Worker status: employees and independent contractors.
    2750.3.
    (a) (1) For purposes of the provisions of this code and the Unemployment Insurance Code, and for the wage orders of the Industrial Welfare Commission, a person providing labor or services for remuneration shall be considered an employee rather than an independent contractor unless the hiring entity demonstrates that all of the following conditions are satisfied:

    (A) The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
    (B) The person performs work that is outside the usual course of the hiring entity’s business.
    (C) The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
     
  2. FLtoOKBound

    FLtoOKBound Heavy Load Member

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    So based on this, if I am reading it right. Every O/o would become an employee. Because every carrier does both B/C. Unless carriers went to have everyone be a 1099 employee and stopped having employee truck drivers. Then no one in their "business" would do that "work."
     
  3. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    They would still have trucking as their business. For example, Landstar is all O/Os and they were affected by AB5.
    But I'm sure that there will be a ton of opposition to this new bill. The ATA will spend a lot of $$ to keep this from happening.
     
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  4. FLtoOKBound

    FLtoOKBound Heavy Load Member

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    Plus the House is more union slanted, where the Senate is more realistic. Not going into politics. Just saying it won't pass the senate, even if it passed the house, in the current form. Plus Trump would most likely veto such a dumb bill. So it'd either have to happen if/after he is voted out, or it'll never get passed federally. Again, not going into politics of who is better/worst...etc. Just stating I don't think it will happen based on those reasons and lobbying.
     
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  5. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    I know in discussing a House bill keeping politics out is difficult, but if this thread devolves into a Dems vs GOP type thread it will disappear into the abyss that is our Politics forum.
     
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  6. bigdad7

    bigdad7 Road Train Member

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    How about communist nutjobs against Americans or would that be political?
     
  7. Mike250rs

    Mike250rs Medium Load Member

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    Kinda surprised they haven't found a way around this yet.. Changing job descriptions and titles or reclassifying drivers as freight consultants and such.
     
  8. shatteredsquare

    shatteredsquare Heavy Load Member

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    they just do what corps usually do, keep creating more fictional layers of hierarchy, none of which know anything about the other. 7 layers of corporation, Layer 1 hired you, layer 2 does payroll, layer 3 does financing, layer 4 doesn't exist but that's where anyone that asks the wrong questions will get directed to, the freight is handled by layer 6. You actually work for layer 1, never seen them, never will, they have nothing to do with freight, don't care about freight, don't know what freight is.
     
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  9. ZVar

    ZVar Road Train Member

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    While the ATA likely will spend money to stop, or at least modify the bill, it will be a drop in the bucket. The trucking industry is simply collateral damage for the bill.
    The ones to really stop it are the companies that it's aimed at. The so called "gig economy" companies, who flaunt the independent contractor laws so much trucking is not even on the radar for AB5
     
    Last edited: Feb 26, 2020
  10. FLtoOKBound

    FLtoOKBound Heavy Load Member

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    Yeah, maybe it will get adjusted to be for those that REALLY abuse it. Or at the least "exempt" the trucking industry. Because if you did get this passed as worded then there would be no ability, at large, for O/o. At least with working with carriers. They'd have to be straight brokerage. IMO. But I may be wrong.
     
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