Trucking Industry Opposes Gig-Worker Wage Law

Jan 29, 2020 at 12:47 PM CST
California's AB 5 forces businesses to convert contract or gig workers to employees. Critics say the law is so broad, it's harming drivers — and not just in the rideshare industry. "AB 5 will affect, really, any company that today takes the strategy of employing their drivers through a contract agreement," he said. "It's an after-effect for the trucking industry," said Clarke. Although effective Jan.1, the law's application to truck drivers has been temporarily held back by a federal injunction. Clarke says the cost is going to rise significantly to pay every contractor as an employee and driver wages are going to go down as a result.

Jan 29, 2020 at 12:47 PM CST

California's AB 5 forces businesses to convert contract or gig workers to employees. Critics say the law is so broad, it's harming drivers — and not just in the rideshare industry. "AB 5 will affect, really, any company that today takes the strategy of employing their drivers through a contract agreement," he said. "It's an after-effect for the trucking industry," said Clarke. Although effective Jan.1, the law's application to truck drivers has been temporarily held back by a federal injunction. Clarke says the cost is going to rise significantly to pay every contractor as an employee and driver wages are going to go down as a result.