California judge freezes new law that would classify truckers as employees, not contractors

Jan 18, 2020 at 03:56 PM CST
Motor carriers in California say they have dodged a bullet for the time being, after a federal judge in the state issued a temporary stay on proposed legislation that would have compelled them to classify their drivers as full employees, not independent contractors. Known as AB5, the legislation stems from California's Assembly Bill 5, signed into law in September 2019 with the intention of making it harder for employers to qualify their employees as independent contractors. The focus of that law was originally centered on ride-sharing models like Uber and Lyft and on the broader "gig" economy, but it could also impact broader freight transportation models that currently use independent contractors, according to a report from the investment firm Baird Equity Research.

Jan 18, 2020 at 03:56 PM CST

Motor carriers in California say they have dodged a bullet for the time being, after a federal judge in the state issued a temporary stay on proposed legislation that would have compelled them to classify their drivers as full employees, not independent contractors. Known as AB5, the legislation stems from California's Assembly Bill 5, signed into law in September 2019 with the intention of making it harder for employers to qualify their employees as independent contractors. The focus of that law was originally centered on ride-sharing models like Uber and Lyft and on the broader "gig" economy, but it could also impact broader freight transportation models that currently use independent contractors, according to a report from the investment firm Baird Equity Research.