Making sense of new CA law AB5

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

  1. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    It's pretty hilarious. You can operate there as an O/O or a lease op as long as you don't live there.
     
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  3. 77fib77

    77fib77 Road Train Member

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    Is mercer a trucking company or a brokerage company?
     
  4. Siinman

    Siinman Road Train Member

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    Just seen a guy post that his company he lease to will not be going to cali. I think they have like 300 plus trucks. Said all company drivers or lease guys was stopped as of the 12yh I think. He went like 1 once a week.
     
  5. Kenworth6969

    Kenworth6969 Road Train Member

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    California hates truck drivers, it was obvious before it but this is the nail in the coffin.
     
  6. Cattleman84

    Cattleman84 Road Train Member

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    @Ridgeline is correct...Its the old 2 check system that would become more common for O/Os... Lease your truck to the company on a 1099, AND hire on to said company as an employee to drive your truck and be paid on a W2.
     
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  7. Long FLD

    Long FLD Road Train Member

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    That’s good in theory as long as they don’t start treating you as an employee.
     
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  8. Studebaker Hawk

    Studebaker Hawk Road Train Member

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  9. Ridgeline

    Ridgeline Road Train Member

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    That makes no sense, because if this was the case, you can’t have any independent businesses doing any work that your company already preforms to help your business.

    I read the roofing example as part of this madness, you have a roofing company, you have work to do but are falling behind so you ask another company to help put and fill in the gap to get work done, now this is illegal under California law.

    by the way there are three points that have to be met, one of them isn’t defined, the control portion.
     
  10. asphaltreptile311

    asphaltreptile311 Road Train Member

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    I'm glad to see the scummy lease purchase deals be tossed but I'm nervous about the "leased on" operators that own their truck being ran extinct
     
  11. jamespmack

    jamespmack Road Train Member

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    Under that system you were a employee and you had a equipment lease. They also paid benefits and company share of taxes. Some were teamsters with their own trucks.
     
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