AB5 is a piece of California legislation that targeted the “gig worker.” Gig workers are those workers who earns a living by non-traditional work such as driving an Uber or other for-hire work.
AB5 was meant to reclassify some independent contractors as employees and went into effect in January of 2020.
Independent owner-operator truck drivers are viewed by many as gig workers. However, truck drivers seem to have skirted the new law. While the history of why the trucking industry has been exempt dates to the 90s, it is a temporary win for the trucking industry not only in California, but as an example to other states who might try and implement similar rules.
What does the future of AB5 look like for truckers?
For now, whether the trucking industry will be impacted by the AB5 law, is to be seen. As the countless lawsuits and impact from the AB5 law unfolds, we will undoubtedly see the laws definitions change. In fact, as of writing this, Uber & Lyft both won exemptions from the new law under proposition 22.
What was Prop 22?
Proposition 22 was, by design, meant to give app-based drivers an exception to the AB5 law. The vote passed in the November election by over 58%. This is good progress when it comes to how the trucking industry might be looked at in the future.
As we have stated earlier, we strongly believe that the trucking industry has a powerful platform capable of great influence regarding reform of AB5 which will help the legislators revise the current law to protect the disadvantaged it was intend to, but also create an even stronger transportation industry. While we’ve seen positive progress in excluding the Trucking industry from AB4, we believe with understanding and perseverance, our clients will help shape revisions to AB5 that will have lasting positive effects on the industry for generations of successfully independent truckers to come!
If you have questions about your truck insurance, give us a call. We can review your current coverage and provide you with multiple quotes from our top-rated insurance carriers.