Making sense of new CA law AB5

Discussion in 'Ask An Owner Operator' started by Bry, Jul 1, 2022.

  1. Bry

    Bry Light Load Member

    Apr 16, 2013

    This guy is awesome. I have known for years that lease operators were often being financially raped, and plenty of CREngland lease ops had full weeks of earning only $20.
    The problem is the new law will hurt actual owner ops. They need to move out of state or get their own authority now.

    Sorry guys, I've been sick. Will watch thread a little but not reply.

    God bless and be safe!
    misterG and D.Tibbitt Thank this.
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  3. JackofAll

    JackofAll Bobtail Member

    Apr 13, 2022
    Eastern NC
    I tend to think this is a good thing. I'm no fan of regulation, but any regulation that injures mega trucking is usually good for the little guy, such as myself, and I suspect many of you.. Megas have been selling, company drivers and newbies, O/O dreams for over 20 years.

    These megas work those poor souls until they break or bankrupt them. Holding the American Dream just out of reach with endless clauses and payments. All of the responsibilities and none of the benefits of owning your own truck. Beholden to the mega while they pay the Leasee 60-70% plus (maybe) FSC and the mega keeps 30-40% for a trailer, dispatch, and billing. Can't imagine there is even company driver pay left after its all said and done. The Leasee is giving up all of his margin just to drive "their own truck".

    Maybe I'm wrong. I've never been willing or needed to buy into the Mega promise. However, very few people I've encountered are willing to put up money to a stranger and not benefit exponentially.
    TallJoe and D.Tibbitt Thank this.
  4. D.Tibbitt

    D.Tibbitt Road Train Member

    Apr 26, 2013
    Gettin' down westbound
    So if this were to be adopted by other states as well. What happens to companies like landstar and mercer who doesnt employ any company drivers ?
    Nostalgic, exhausted379 and 77fib77 Thank this.
  5. Six9GS

    Six9GS Road Train Member

    Dec 3, 2012
    Yuma, AZ
    While some of the details on AB5 I tend to disagree with. Overall, I think it's a good thing. Problem it solves is that many who are 'classified' as independent contractors, in reality are company employees. And, by being classified as independent contractors they too often get the shaft. The companies make out at the expense of the drivers and that's what this works toward fixing.
    Short Fuse EOD Thanks this.
  6. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011
    Omg, all they have to do is form a company, llc is fine, have the contract in the name of the company and make the owner an employee, stops the issue with this crap.
  7. 4noReason

    4noReason Road Train Member

    Nov 29, 2012
    is S corp fine Inc. or do it have to be llc
  8. nikmirbre

    nikmirbre Road Train Member

    Jul 27, 2011
    High Point NC
    If im not mistaken, they had stopped leasing on anyone in those states......
    Dave_in_AZ and D.Tibbitt Thank this.
  9. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011
    It can be anything except a sole proprietorship, you have to be an employee of your company and it removes the contractor status because you are an employee.
  10. asphaltreptile311

    asphaltreptile311 Road Train Member

    Jun 16, 2016
    Anybody see this killing out the o/o unless you have your own authority
    77fib77 and Dave_in_AZ Thank this.
  11. Long FLD

    Long FLD Road Train Member

    Mar 4, 2015
    Is it a fact that a business can be hired to perform the same tasks as the business that is hiring them? The “B” part seems pretty clear that you can’t hire a non-employee to perform the same functions as your primary business.
    wis bang Thanks this.
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