Looking to talk about AB5 in California

What is AB5?

 

Is that the one that outlaws all 1099 positions?

 

I heard landstar will no longer employ owner operators who reside in california.

 

What would be the reasoning behind that??
That would be a good excuse to move to the US though. lol

 

AB5 is the reason.

 

Because you can’t be leased to a motor carrier. Landstar would have to make CA residents employees.

 

If that is the case, wouldn't all carriers not hire Cali OO's?
The way I underood the law, if it is the new one I am thinking about, was a truck or fleet owner could no way pay on a 1099 anymore, no kind of mickey mouse truck lease deals anymore.

 

You can’t hire independent contractors to engage in the business that is your primary business. A trucking company can’t pay someone on 1099 for trucking for them. Basically it does away with owner operators being leased on to a carrier.

Everyone thinks this is great because it saves people from choosing to get into a terrible lease purchase but they don’t understand that it also does away with someone who owns their truck leasing to a carrier. The two check system is a way around it but then you as a driver loose a lot in taxes because you’d be back to an employee driver with no deductions.

 

My carrier is ominously quiet about it even though we have been asking for weeks what their plans are for us California lease operators. I'm cleaning out my truck Thanksgiving except for a few essential items in case they direct me to homebase to turn my truck in, I will be ready. Already have offers to go local and regional around home in Cali as a backup plan.

 

It would have been even better if they had banned all independent contractors from entering the state. That way every body could run to the border to pickup their toilet paper. lol