@@D.D.S-909 Yes that's how I understood it as well, I have my own authority but I was thinking I won't be able to pull loads for anyone that dispatches that also has their own trucks as well. So we are slightly affected by it. How about Amazon? They have drivers and their own trucks so we can't even pull for Amazon either can we...🤔
@@D.D.S-909 Yes that makes sense just separate the 2 companies, 1 broker and the other trucking company. I'm sure the big companies would do that, that's a good idea, I didn't even think about that. Bend the rules without breaking them... lol.
@@D.D.S-909 I definitely feel your pain my friend, yeah most likely both parties will get fined. Working at the ports I could be incorrect I've never did that type of work but aren't most of those least on owner operators. I don't think many drivers have direct connections to Port contracts themselves. If I'm correct on this imagine the supply chain shortage then, when all these truck drivers can't offload the cargo ships. 😟
When Swift, Prime both make more money leasing trucks to drivers than they do moving freight, something is wrong. The "lease to own" scam is a disaster. A company can lease, repo and release the same tractor many times. Each time casting the lessee into bankruptcy. I operate under my own authority, I have no problem with AB5. In the short run it will be difficult for some individuals, but 6 months from now the ATA will be forced to take a fairer stance with drivers.
Good Evening, Here are my views, I’ve been a cdl holder since the early 90’s. Some may agree others will not, I am ok with either. I will start this off with “words matter.” - Lease purchase - Leased on to a carrier Both are very different, many use the term lease operator however that is very ambiguous in our industry. Signed on carriers: - Many owner operators are signed on to a carrier for whatever reason, why should we allow any government to dictate how, when, where we operate a legitimate business. - Many are signed on due to insurance reasons or other industry guidelines that make it impossible for a single owner operator to handle. What do I mean? - Carriers who haul hazmat and are leased on to a company or heavy haul operators for an example. This law just put them out of business. Lease Purchase: - Most understand the challenges with this type of business model. The unintended consequences of this new law. - Higher rates? Maybe - Increased insurance rates due to more risk? Many businesses operate like trucking has, so why go after us now. - Take the cable contractor - Traveling nurse We could go on and on with many examples of everything in this comment, bottom line is is we allow this to happen than we only have ourselves to blame. I have my own authority and this isn’t for everyone, is it more money? That can only be answered by each individual, either you have the will to do the drill and the desire to learn or you will not be happier. Stay safe.
Had plenty of time to get their ducks in a row prior to Supreme Court. Anyone caught with their pants down should have bought a belt. Leasing your truck from the company you are driving for is NOT being an O/O. You ARE an employee. That's the scam and I support AB5.
I bought my first truck in 2007 , I was leased to 2 companies til I got my authority in 2009 . When you are lease you don’t know a lot of the process of the business. You might be feeling it’s over now what? But I’ll tell you guys one thing when you get your authority you’re totally free! It might be little more work with dot audit etc.but at the end it pays off .
Here’s my 2 cents.. If you are leased on and it’s a lease purchase, this may complicate things… but let’s say you own the truck outright … Like my guy just said.. insurance for new authority is going to high.. you will need 25k to 30k not including the truck ..half or more will be maintenance funds.. *insurance down pay $3000-6000k *plates/reg $1200-$2000 *2290 $500 *Incorporate $200-$500 *GPS $300-$500 *Set up bank business account *Quarterly IFTA taxes *Audit within first 90 days by FMCSA *Get permits when running in KY, OR, NM..ect. *When you have a breakdown call dispatch.. that’s you *When you start you will need carrier packet with every company you book a load with. *a lot of brokers will tell you you need 60, 90 days 6 months to a year in business. *and if your leased on with dispatch, you will need to book/negotiate your loads.. My point is I hear a lot people saying “just get your own authority” It’s not that simple, what percentage of these lease drivers have 30k? I don’t know but I doubt they all do… and so much more to it .., I bet half the things I’ve listed is going to be something new for these guys ..I don’t even mention a trailer…do you own one? But I wish the best to all, we just have go out there and fight!
I'm in California. I looked at the numbers and realized I would make more by buying some trucks and hiring drivers as employees. Yes, that's with the high gas prices.
As long as your rates pay enough you could still make money and your equipment doesn’t have higher payment hopefully paid off already there is still a good amount of money floating around in the industry
Well said... you're right as always, and you and all of us involved in the trucking industry we should be concerned about this law as it will have a ripple effect combined with a domino effect leading to shaking the industry... It definitely looks like California is keen in messing up the trucking industry...sad... Yes protecting employees from corporate greed and abuse is critical so indeed no employee should be switched to independent contractor without proper mutual agreement... Yet many owner-operators don't want or have any need to be employees and the independent contractor status works fine for them... It's gonna be a mess... ugly and unpleasant...
COMPLYING WITH "THE AB5 LAW" DOES THE GOVERNMENT MAKE YOU PAY A FILING FEE TO FILL OUT THE PAPERWORK? "TAXATION IS KING"! HOW MANY TIMES A YEAR CAN THE PAPERWORK BE FILED, ONLINE OR IN PERSON? CHARGING A FEE FOR EVERY OWNER OPERATOR ACROSS AMERICA EQUALS:🤑🤑🤑🤑🤑
One thing that you missed, and it will affect you. If you are a out-of-state truck driver lease-operator, and you do business within California, the AB5 law effects you also.
Our Ohio warehouse (closing down in early September) regularly shipped transit bus parts to California via a California carrier who drove across the country to pick up our load and deliver it to customers in California. I hope this owner-operator can remain in business, as a last resort moving out of California.
Really? I could of miss something when I read up on it but I thought it says its a California labor law. Wouldn't that apply to California residents only? Guess I'll do some more research, thx
@@rogermelton7635 Whatever you can find out let us know. Honestly, it will effect a lot more drivers/people than we thought. This law is extremely scary and other states are looking at this also...
this a simple fix just like the trucker in denver that got 110 yrs in prison reduced down to 10 yrs.... every truck in california needs to say "i wont make any deliveries in california as long as this is law".... within 2 weeks the law will change....
If You're an independent trucker you choose where you travel and which load you pick up truckers as a group including brokers and major companies need to boycott California you can choose to do business anywhere why not do it in a state that appreciates you don't bother writing your Congressman or senator or representative they don't give a damn the only thing California's going to understand is a complete lack of goods brought in by trucks you can't use reason and logic with these people
so does this mean if i have my own truck and own authority but move for the same distribution company everyday i will have to change to a broker? or finding my own loads?
Do you guys understand the immediate problem this causes? How many CA. trucks leasee's alone now have to decide to become "employees" ( and who's gonna hire them?) or acquire their own Authority? Authority takes 45-60 days minimum. How many Port trucks are leased-on are there? Any truck that rolls into CA better have it's own Authority, or is an active employee.
Last report I heard, there are approximately 70,000 trucks leased to these ports or involved in drayage in general. JB and or Swift do not have the capacity to swoop in and save the day on this one. But, I am sure they are chomping at the bit to get in there.
INSURANCE--UNIONS --GOVERNMENT will make a lot of money with this new law. Insurance is sky*high for a new authority, a lot of truck drivers now will be paying dues to the unions because NOW they are EMPLOYEES of a unionize company and when you are a employee of a company your employer have to pay work compensation guess who gets that money.I see people here talking how good is life with your own MC but they forgot how hard was to get a job with a NEW MC working for pennies you pay a lot money to buy you own truck now you have to get a insurance authority go into audits etc etc government are making all this to fill they own pockets. THEY want to make a law fine BUT GIVE PEOPLE THE OPTION DON'T FORCE THEM .
Owner operator have their own authority (independent)and lease operator don't have any authority(employee). Authority -tags,ifta and insurance in their name
It sounds like Really a good thing for owner operators because if the carrier they’re hauling for can’t get them a good load they have the option to immediately call a broker or another carrier to get them a load if I am assuming this is what’s going on. A lot of least drivers or owner operators can only work for contract with carrier I guess and not haul for someone else or possibly even for themselves ?
I am leased to a small carrier here in Michigan, and have done just that, but it is still run through my lease carrier. I have never had a carrier not work with me in this regard. You would need to have your own operating authority to do what you are suggesting.
Your insurance with a bad driving record that these lease drivers had . There dropping like flies insurance is the biggest thing . One accident in your truck are person car effects your insurance. They will quit because of insurance.
Has anyone thought about the long term in regards to how CA enforces this new AB5 law? Right now, an out of state carrier can operate in CA, regardless of the drivers pay status. But, I can see the day coming, when CA figures out they can go after out of state carriers for operating illegally in their state under AB5. It would only take a trip to the State IFTA office to gather the names of the carriers that have done business in their state. They gather that info, send out a questionnaire and it is all over, they start legally going after carriers and fining them for not being in compliance with AB5. And even worse, I could see them going for the operating authority of the said carriers that do not pass their ABC test until all fines are paid in full, or other financial arrangements are made to pay off these "debts". If I was a carrier, one that cannot pass their ABC test of AB5, I would cease all operations with CA immediately. I am sure there are carriers thinking this right now, or at least I hope there are.
That's already happening for outside carriers to who are leased on to people's authority.theyre getting together with weigh stations monitoring everyone coming in, Plates, mc # just like fuel tax, you have to show who and what you conduct with. As well as eld which shows location. Brokers or carriers will be updating people about that. Project44 through RMIS where you sign up as a carriers monitors my eld 24/7 if I want to continue being in the system getting loads. I'm from Chicago but go to cali weekly. Now also people don't realize they have to get signed up with uiia to do port work and that's a waiting trial of 45 days plus, now imagine with them being flooded with paper work.
I've been working in the logistics industry as a broker and on the 4pl side for 5 years. Really interested in starting my own business and building my own business.
Love the break down and explanation. Sadly so many are missing how to beat it. The last two points describe the exact type of business a franchise does. They sale or operate in the capacity of the business they bought or pay franchise fees to. So how to beat it? Get your lllc, redefine the contract removing any and all words that say or are societies with owner operator, lease operator and contractor replacing them with franchisee. Add in a section for franchise royalties and honestly this can be a percentage of the load or a simple monthly payment or even broker fees. Your no longer a contractor or owner operator, you are a franchisee operating in the capacity of and doing business as truck company corporation. Perhaps obtaining a dba instead of a llc would be another route. The truck is to become a franchisee and if California wants to stop that then they will be taking on major corporations such as subway, McDonald’s, Burger King, Brandon ford dealership blah blah you get the picture as it would force California to go up against the multiple billion dollar industry if franchises that makes up a large portion of our economy.
Seriously??? If you are that smart , then make it ease for yourself . Get your own MC and stop making those big corporations bigger and stronger !!!! If you are thinking how to rewrite the laws and regulations, you must also understand that rouse lease operators and anyone who works under someone’s authority, is destroying this industry, right ? We must think about this industry . We , the O/O can not compete with Mega carriers , because they don’t make money off freight , they make their money off you !!! Come on smart people .
@@unperuanoenlascarreterasde9964 sounds like you should have signed on with a mega carrier before getting your mc. You would have learned how to operate and own a truck more efficiently maximizing profits and be able to still make a good profit for your self with the high fuel prices, crappy freight rates and competing with the mega carriers for business. I can pay all my personal bills, save money and cover all truck related expenses including bidens fuel prices for $2 a mile, can you? When prices go down I do it for less than $2 a mile, can you? I bet you answered no to those questions, which means your not as smart as you think.
@@russellhix6802 I did not mean to upset you . I’m not here to compete with you . I’m here to let you guys know that there is a better way to do business and it is not about ME or YOU . It is about this industry . Now , since you brought it up what you earn working for a pimp , let me Tell why I’m 100% independent O/O My equipment is paid off . 2015 cascadia . My Reefer 2018 Great Dane . I bought my truck in 2017 and I paid it off in 2020. I bought my Reefer in 2018 new from dealer and I paid it off in 2021 . I run between 60-70k miles per year and I run about 6 - 7 k miles per month. Figure it out . I go anywhere I want , I charge as much as I want , I stop and park my truck whenever I want and I’m not afraid of any handler that will get pissed off or I’m not afraid of getting fired . I have parked my truck /Reefer since February 28 because rates got so bad . My trucks has been parked for 4 mi the .I was waiting for People Like you to wake up and realized that you were being screwed . Did you gross 304,000 dollar last year with your truck ? Did you 64,509 miles last year ? Be honest . You can lie to me , but you can’t lie to yourself, do you know what I mean ? So, you are not my competition , RUSSELL. I compete with myself. I live a very simple life and I don’t miss important dates with my family , can you see the difference between you and I ? Since I don’t have dents other than my house , I can run loads for 1.80 per mile , but I don’t do that . Do you know why ? Because I have ethics . Because I love trucking . Trucking , for me is a way of life . I’m not here to work like slave . I’m here to enjoy it , therefore I must take care of this industry . I don’t agree with brokers rates and I refused to haul it because I have dignity ( look it up in the dictionary ) But , if you are happy doing what you do , the continue doing it . Wish you the best . I’m willing to share my experiences with you guys .
@@unperuanoenlascarreterasde9964oh I am not upset. Just making a bold point. Let’s say I go out tomorrow and grab my mc, in about 6 weeks it’s in my hands and I jump right on it. What’s my chances of getting the higher paying loads? None to very slim because the ink hasn’t had time to dry on my mc. It takes having your mc at least 6 months but 8 to be safe, before you can touch the better loads that have the biggest bang for the buck. So why not be a company driver and get some experience. Become a contracted o/o learn some ropes and see if your own mc might be something your interested in while your saving up? Pay cash for an old school coal rolling beast and grab your own mc to run on your home time. That way when she breaks, you still got a steady income to make sure you don’t go bankrupt because all you can get with a new mc is crumbs for loads? After that old thing is purring like a kitten and you have a small but steady income monthly, your other truck with the company is paid off, and you have at least 8 months on your mc then say bye bye mega and hello big bucks while you look for a driver for the other truck and start off full time with two trucks that your familiar with instead of just 1 that you just bought? I am where I am as it is all part of the plan. I won’t struggle with a new mc like 99% do and I’ll have two trucks when I leave the company instead of 1 and have a steady, although small, flow of cash each month and shouldn’t have to touch much, if any of my personal savings? You made the assumption that I was just a dumb company o/o who hasn’t done his homework. I also realize many get to where I am and they realize they don’t have what it takes to become 100% independent or they don’t want to take the risk or deal with the head ache. Possibly they realize that they are uninsurable as an independent. I found a way to make that next step much easier than most have ever done and increasing my chances for success by more than 60%. Don’t judge because you never know why a person is where they are and they may be under that mega carrier cause it as far as they can go for the time being or like myself, they have a grander master plan and are working towards that goal. You can’t honestly tell me that my approach and plan is a bad one.
@@russellhix6802 I totally understand that . Russell, look . I started in this business with 0.0000 experience. I did not go to any school for my CDL, therefore , no company wanted hired me , so I was obligated to become my own man and I have not regrets At the beginning my insurance was about 18,000 er year , about 10 years ago . It was very expensive , but I had to do it. It paid off . Hopefully you get what you want , seriously bro . I wish you the best bro .
How about you work save money for a down payment for a loan to get your own truck and become a independent contractor business. If you don't want to be a employee worker.
I believe freight dispatch services will be able to help the owner operators with the ones that have there own MC at least finding good freight helping him to do contracts invoice and billing even belong them with ifta So to take a big portion of what requires run a trucking company offer there shoulder as long as you provide them with great service
Most of the owner operator will be out of job according to me. It's not that easy coz of there language barriers. I have O/O's working with me have hard to communicate in english that's why they were working with me. Other thing is most of them just bought the truck not a trailers and working with mega carriers by doing hook and drop program. They be out of job as well. This is going too effect them fs. Are double brokers going to effect with this? Who book load on different MC and selling it on different. Are brokers like Prime going to effect? Who book loads with brokers and sell it to small carriers under same MC?
For months I could see this coming a little at a time. The writing was on the wall...but most did not read. I've been telling people for a year...stock up on everything from canned meats to soap.....your pet foods to canned veggies and fruits. I told them the "grocery fairy" will not bring things to the stores for you people.
If the Teamster were still around. Like in 1960. The whole country would be locked down. BUTT and it is a big one that also meant the drivers made too much money and they demanded and got respect. Believe or not you HAVE to be a asshole to deal with a asshole. That is why Hoffa disappeared. It was not the mob that did it. Vegas was the prize. Now you have corporate gambling everywhere. Oh and they also controlled their own retirement funds. Is it a coincident that soon after Fitzsimmons got jailed the IRA investment scam came along? How about all those GM workers that got burnt when GM got 'reorganized'. Guess what UAW line workers do NOT get now? PAID Retirement, matching IRA, paid hospital and other stuff that is only for upper management, along with a living wage. Management says unions are commies. But the reality is you are working on a plantation. The slave revolt was put down in the 90s. Only the E lites are supposed to enjoy the finer things in life.
INSURANCE--UNIONS --GOVERNMENT will make a lot of money with this new law. Insurance is sky*high for a new authority, a lot of truck drivers now will be paying dues to the unions because NOW they are EMPLOYEES of a unionize company and when you are a employee of a company your employer have to pay work compensation guess who gets that money.I see people here talking about how good is life with your own MC but they forgot how hard was to get a job with a NEW MC working for pennies you pay a lot money to buy you own truck now you have to get a insurance authority go into audits etc etc government are making all this to fill they own pockets. THEY want to make a law fine BUT GIVE PEOPLE THE OPTION DON'T FORCE THEM .
@@brandonthefreightbroker If you are an Leasee w/o self-Authority and drive into California, California may fine you and then you have the hassle of fighting that.
@@brandonthefreightbroker Everything I am hearing is that if you do not pass the ABC test, and are based in another state, you must still abide by the AB5 law... On edit: After digging around for a bit... As an out of state carrier you can still operate in CA, no matter the driver's employment status. But, I can see CA sifting through IFTA records and going after carriers in the near future, looking for companies that do not fit into their ABC model and fining them for fraud, etc... Or worse, having their operating authority pulled for not only fraud, but other criminal offenses. Taking this in to consideration, I would honestly cease all business with any entity based in CA.
Question, real simple, yes or no answer, read carefully. As a truck owner operator, I own the truck, it is titled in my and my LLC's name. I am leased to a Michigan based carrier with interstate authority. In two weeks, will I be able to legally transport a load of freight from Michigan to California and NOT be in violation of the AB5 law? I did some digging, if you are a resident of another state, other than CA, you can still operate in CA legally, no matter your payroll status. But, being old and a student of corrupt government, I could see the day where the state of CA will go back through IFTA records and legally go after trucking companies who operated in CA under this AB5 law that did not pass their ABC test. They could then go after you for fines and whatever else they can think of. And don't think for a minute there will not be some judge or the feds that will stop these kinds of shenanigans, they will rain down hell upon us because they can. Myself, if a carrier, I would cease all operations with CA.
Ur good for now it's a California labor law so only applies to California CDL holders if there lease operators. I'm a owner operator in California but I run under my own authority. They don't even know who well enforce this law yet anyways so it could take some time to play out.
Questions I'm a Independent contractor and independent service provider,, I pay my drivers W2 I do all the leg work pay breakdown pay taxes pay 401k pay truck notes etc I have an agreement with the Carrier that I use for years using there DOT number they pay me 1099 weekly Settlements where do you think I stand? I'm in California smh
So does this mean that if I have a truck driver with an independent business in California that I can go to Nevada and establish my business relocation in Nevada and still be able to do work in California such as the dryage port work
I know some lease operators here in California just switch there California license to a neighboring state license. The law says only California residents. Doesn't say anything about the business being in California.
Either you are a company driver or not. The lease crap was a joke with the Mega Carriers making a killing off tuckers. Unless you think the Carriers are doing this out of the kindliness of their heart. Wake up.
LOL those ppl don't give a crap about "worker misclassification". Those people already ran the numbers and found out how much tax revenue they were missing. That was the "misclassification" lol. That's how I knew they were eventually going to enforce this. Also people rejoicing in the potential destruction of LP guys pump your brakes lol. That's not gonna happen. All these companies got to do is rewrite their contracts give the drivers the ability to leave with the truck at any time in the contract. WHICH SOME OF THEM ALREADY WERE DOING YEARS AGO...
Young driver here. So here's my question. Ab5 was put in effect in california. Everyone knows that when a law goes into effect the other states will mirror that law in some effect. Mind you when I say this question I'm no fan of 1099. My question is why everyone is trying to avoid being an employee? I understand 1099 does make drivers get more money for the work they do. But at the end of the year they have to pay the tax man. Owner operators or at least purchase drivers have to pay taxes on the truck fuel and everything and then I'll back have to pay taxes on their 1099 at the end of the year. Was such a huge negative. How is this a positive? I wouldn't being an employee be beneficial in the long run in the event of termination to get unemployment benefits without having to worry about if you're being eligible. Or what about the fundamental of paying for your social security. Keeping in compliance with the social security office so you can get your social security at the appropriate retirement age. In my opinion ab5 kind of gets rid of the 1099 use that's run rampant in the industry. And that these carriers need to take responsibility for their employees instead of trying to cop out on little ins and outs of expenses. Like paying taxes for employees on the road and actually paying for paid leave all this other good benefits.
In my opinion , if you are no fit to run your own business as an 100% independent O/O , then you shouldn’t be in this industry as a leasing operator or operating under someone’s authority, period!! If you are doing that , you are destroying this industry ! You are doing all the work and paying to someone else to tell you what to do ???? Seriously??? If you feel like being 100 % independent O/O is too much responsibility, then don’t do it , but do not drag us into this exploitation. Think about that . Those companies who you work for are in this business because they are making billions off you , they don’t care anymore about making money off freight . So , for us , the O/O , how can we compete with them ? It is imposible!! So , please get your MC and be your own man , be disciplined , be responsible, save your money and you will be happier !!!! If you want to drive , drive for those big companies with goo pay , with all your benefits , drive for them with all your conditions!!! Let’s help each other so we can save this industry !!!!
Hello, I would like to ask how will this affect a leased on owner operator in California if the business they are leased to is based out of another state? For example, if you are a leased owner operator with a company that’s authority is based out of Iowa but they have local port work in California are you still able to work?
That is a good question, I can only look at Landstar to answer. When I was leased on with them, they told all of their contractors or "BCOs", that they had to either relocate to another state or LS would cancel the lease agreement as it would now technically be illegal in CA to operate under LS authority. It is very difficult to get any solid answers on the many questions being asked. And LS did cancel those leases for those that did remain in CA.
@@G2wo I have done a bit more research on this, I believe you are no longer legally able to operate your truck, as you are now in violation of the AB5 law due to your residency, even though you are leased to an out of state carrier. You may find yourself in the same position many LS BCO's found themselves in, a canceled lease agreement. I would call your carrier, you may be screwed short of obtaining your own CA operating authority. The only other thing I can think of, and you will need to call an attorney/CPA that has payroll law experience along with this AB5 nonsense. Maybe, you can set up an LLC or Corp, the settlement check would have to be broken up, one check made out to you personally as the driver, the other check to your company. The check to yourself, must have taxes taken out, the other check goes to the company for operational costs. That is one way I think folks can get around this. But, contact an attorney or a CPA, it may be that the carrier you are leased to would have to do this vs yourself. These are uncharted waters. And who is to say they will not go after out of state carriers later on that use 1099 contract employees?
@@michaelwright1602 that’s what I was thinking it’s about residency because from what I’ve seen is this came up over state taxes not being paid and California missing out on that Tax money so I’m assuming it’s directly for California residents
@@G2wo I would seriously contact an attorney or CPA, run my solution by them and see if there is anything there. That is honestly the only way I can see you doing this legally, unless you are able to use a family members out of state addresss, but that also could land you in a fraud situation if they find out you are still residing in CA... Maybe park the truck until you can get some straight answers.
@@matt89108 Wow, that was a stupid response. I stated a list of things contractors have to do to maintain their business that employess do not have to do.
Hi Brandon I appreciate you keeping us up with the lastest. I wanted to ask for your contact info in regards to a program that I'm apart of. It will help alot of your listener along with family and friends. Please forward best source for communicating. Thank you.
Well hopefully they will figure out how to get goods delivered in California... Looks like they just shot their self in the foot with this bill. I think they could have come up with something better. Now the state will suffer right along with Truckers and Uber and Lyft drivers 🤦🏾🤷🏾
Not that easy, and have you priced insurance as a new entrant? I know guys paying some outrageous amounts just for cargo and liability. Clean records, no accidents, that have been driving safely for years.
Is this law just in California, do what they did in Canada. You truckers need to stand up and fight. Crying about it ain't going to help. This is what happens when the federal and state governments interfere.
Seems too early to speculate in my opinion. But lease operators are limited to the carriers that leased them. True owner operators run on their own authority. It hurts right now but will be good for trucking in the long run. Look at the bankruptcy rate of lease operators. Lease operators take on the carriers responsibilities without the ability to move outside the carriers loads, hence why the law is now putting the responsibility back to the mega carries. This will be good in the long run because I believe that just because this happened it doesn't mean that said companies don't still have those contracts so it's going to put the pressure on them to keep the lease operators as company drivers but in order to do so it will require good party and benefits.
Trucking company's run rates into the ground in the past twenty years... and to compensate for the loss of $ they began leasing trucks to drivers. $$$$
I think this law will be a good thing in the long run it will eliminate mega carriers from passing the buck to these so called owner operators that lease purchase trucks from a company I call them lease operators because they are solely depending on the company they are leased to day to day operations. Not only are they taking advantage of drivers they are also cheating the government out of billions of dollars in tax revenue I think this opens the door many states to follow suit and it should. It will make these trucking companies be more responsible and increase rates
I’m hoping they’re only going to apply this to Ca residents there’s a grey area they don’t specifically say it’s just for Ca residents they said the whole state. So will that stop some of us leased on OOs from being able to deliver and pick up in CA? I live in NV but I frequently go to LA for loads I like booking my loads out of CA they have some of the best paying freight plus I love going to CA I was born and raised there I know that state like the back of my hand
Go price the cargo and liability insurance as a new entrant... I have friends that did that, they are paying $30,000 a year for insurance as new entrants. Clean records and years of violation and accident free service. Then throw in the $6 diesel? This is not 30 years ago, or even ten.
It's not owner operators side lined.its lease operators and contractors lol.contractors and lease operators still have health care we have everything a company has so you need to get your facts straight.
Brandon, the one thing you failed to mention. Just quit hauling in and out of the Comunist owned state of California. I currently know of ten trucking companies that won't even run there trucks in that state. It also boils down to one thing only businesses are leaving that state. Safe travels and roads Brian and Cindy, "xtreambydesign with passion"
@@brandonthefreightbroker ca been trying for years to get rid of truckers ..let the people stare .not get meds.or any household stuff .what part of that don't you understand look at Port in LA man..
If you own your truck and have your own operating authority, You’re completely unaffected.
yep
@@D.D.S-909
Yes that's how I understood it as well, I have my own authority but I was thinking I won't be able to pull loads for anyone that dispatches that also has their own trucks as well.
So we are slightly affected by it. How about Amazon? They have drivers and their own trucks so we can't even pull for Amazon either can we...🤔
@@D.D.S-909
Yes that makes sense just separate the 2 companies, 1 broker and the other trucking company. I'm sure the big companies would do that, that's a good idea, I didn't even think about that.
Bend the rules without breaking them... lol.
@@D.D.S-909
So I live in California (Unfortunately😒) if I pull an Amazon load now, who gets in trouble me or them?
@@D.D.S-909
I definitely feel your pain my friend, yeah most likely both parties will get fined.
Working at the ports I could be incorrect I've never did that type of work but aren't most of those least on owner operators.
I don't think many drivers have direct connections to Port contracts themselves.
If I'm correct on this imagine the supply chain shortage then, when all these truck drivers can't offload the cargo ships. 😟
When Swift, Prime both make more money leasing trucks to drivers than they do moving freight, something is wrong. The "lease to own" scam is a disaster. A company can lease, repo and release the same tractor many times. Each time casting the lessee into bankruptcy. I operate under my own authority, I have no problem with AB5. In the short run it will be difficult for some individuals, but 6 months from now the ATA will be forced to take a fairer stance with drivers.
Exactly what I say i agree 100%
Well said.
Good Evening,
Here are my views, I’ve been a cdl holder since the early 90’s. Some may agree others will not, I am ok with either.
I will start this off with “words matter.”
- Lease purchase
- Leased on to a carrier
Both are very different, many use the term lease operator however that is very ambiguous in our industry.
Signed on carriers:
- Many owner operators are signed on to a carrier for whatever reason, why should we allow any government to dictate how, when, where we operate a legitimate business.
- Many are signed on due to insurance reasons or other industry guidelines that make it impossible for a single owner operator to handle. What do I mean?
- Carriers who haul hazmat and are leased on to a company or heavy haul operators for an example. This law just put them out of business.
Lease Purchase:
- Most understand the challenges with this type of business model.
The unintended consequences of this new law.
- Higher rates? Maybe
- Increased insurance rates due to more risk?
Many businesses operate like trucking has, so why go after us now.
- Take the cable contractor
- Traveling nurse
We could go on and on with many examples of everything in this comment, bottom line is is we allow this to happen than we only have ourselves to blame.
I have my own authority and this isn’t for everyone, is it more money? That can only be answered by each individual, either you have the will to do the drill and the desire to learn or you will not be happier.
Stay safe.
Had plenty of time to get their ducks in a row prior to Supreme Court. Anyone caught with their pants down should have bought a belt. Leasing your truck from the company you are driving for is NOT being an O/O. You ARE an employee. That's the scam and I support AB5.
i can dig it!
Same here. Dummies thinking they own a truck while in reality leasing
I bought my first truck in 2007 , I was leased to 2 companies til I got my authority in 2009 . When you are lease you don’t know a lot of the process of the business. You might be feeling it’s over now what? But I’ll tell you guys one thing when you get your authority you’re totally free! It might be little more work with dot audit etc.but at the end it pays off .
You have not priced insurance as a new entrant lately, have you?
Here’s my 2 cents..
If you are leased on and it’s a lease purchase, this may complicate things… but let’s say you own the truck outright …
Like my guy just said.. insurance for new authority is going to high.. you will need 25k to 30k not including the truck ..half or more will be maintenance funds..
*insurance down pay $3000-6000k
*plates/reg $1200-$2000
*2290 $500
*Incorporate $200-$500
*GPS $300-$500
*Set up bank business account
*Quarterly IFTA taxes
*Audit within first 90 days by FMCSA
*Get permits when running in KY, OR, NM..ect.
*When you have a breakdown call dispatch.. that’s you
*When you start you will need carrier packet with every company you book a load with.
*a lot of brokers will tell you you need 60, 90 days 6 months to a year in business.
*and if your leased on with dispatch, you will need to book/negotiate your loads..
My point is I hear a lot people saying “just get your own authority” It’s not that simple, what percentage of these lease drivers have 30k? I don’t know but I doubt they all do… and so much more to it .., I bet half the things I’ve listed is going to be something new for these guys ..I don’t even mention a trailer…do you own one? But I wish the best to all, we just have go out there and fight!
YES!!!!!
I'm in California. I looked at the numbers and realized I would make more by buying some trucks and hiring drivers as employees. Yes, that's with the high gas prices.
As long as your rates pay enough you could still make money and your equipment doesn’t have higher payment hopefully paid off already there is still a good amount of money floating around in the industry
If you have your own customers. You can’t sub for other carriers
Well said... you're right as always, and you and all of us involved in the trucking industry we should be concerned about this law as it will have a ripple effect combined with a domino effect leading to shaking the industry...
It definitely looks like California is keen in messing up the trucking industry...sad...
Yes protecting employees from corporate greed and abuse is critical so indeed no employee should be switched to independent contractor without proper mutual agreement...
Yet many owner-operators don't want or have any need to be employees and the independent contractor status works fine for them...
It's gonna be a mess... ugly and unpleasant...
thanks for sharing Gabe! appreciate your perspective. peace and prosperity!
California is ahead of most places Hope we get the same type of laws for AZ workers
Best explanation about AB5 👍
Thanks so much for the information Brandon I live here in Los Angeles California
COMPLYING WITH "THE AB5 LAW" DOES THE GOVERNMENT MAKE YOU PAY A FILING FEE TO FILL OUT THE PAPERWORK? "TAXATION IS KING"! HOW MANY TIMES A YEAR CAN THE PAPERWORK BE FILED, ONLINE OR IN PERSON? CHARGING A FEE FOR EVERY OWNER OPERATOR ACROSS AMERICA EQUALS:🤑🤑🤑🤑🤑
we'll see!
They did the same thing here in the UK! IR35! Had to fold my company and get hired as an employee! Only the big wigs will be left
Excellent Video Sir,
Thanks for keeping us updated
my man! thanks Lew! peace and prosperity!
Just move over to AZ or NV. Savings on taxes will more then offset the cost for the move. It's a short drive back into CA ports.
WORKING TO LIVE or LIVING TO WORK? That’s the question that drivers must chose.
Just moving out of California, would be a good start.
One thing that you missed, and it will affect you. If you are a out-of-state truck driver lease-operator, and you do business within California, the AB5 law effects you also.
Our Ohio warehouse (closing down in early September) regularly shipped transit bus parts to California via a California carrier who drove across the country to pick up our load and deliver it to customers in California. I hope this owner-operator can remain in business, as a last resort moving out of California.
Really? I could of miss something when I read up on it but I thought it says its a California labor law. Wouldn't that apply to California residents only? Guess I'll do some more research, thx
@@rogermelton7635 Whatever you can find out let us know. Honestly, it will effect a lot more drivers/people than we thought. This law is extremely scary and other states are looking at this also...
They aren't O/O they are leasers who are owned by the mega carrier who is bending them over. Get your own authority and be a real O/O
this a simple fix just like the trucker in denver that got 110 yrs in prison reduced down to 10 yrs....
every truck in california needs to say "i wont make any deliveries in california as long as this is law"....
within 2 weeks the law will change....
If You're an independent trucker you choose where you travel and which load you pick up truckers as a group including brokers and major companies need to boycott California you can choose to do business anywhere why not do it in a state that appreciates you don't bother writing your Congressman or senator or representative they don't give a damn the only thing California's going to understand is a complete lack of goods brought in by trucks you can't use reason and logic with these people
Real company with workers
U.S. Constitution Annotated
Clause 1
No
>>>>State>Law impairing the Obligation of Contracts,
so does this mean if i have my own truck and own authority but move for the same distribution company everyday i will have to change to a broker? or finding my own loads?
Just keep Trucking
Do you guys understand the immediate problem this causes? How many CA. trucks leasee's alone now have to decide to become "employees" ( and who's gonna hire them?) or acquire their own Authority? Authority takes 45-60 days minimum. How many Port trucks are leased-on are there? Any truck that rolls into CA better have it's own Authority, or is an active employee.
Last report I heard, there are approximately 70,000 trucks leased to these ports or involved in drayage in general. JB and or Swift do not have the capacity to swoop in and save the day on this one. But, I am sure they are chomping at the bit to get in there.
INSURANCE--UNIONS --GOVERNMENT will make a lot of money with this new law. Insurance is sky*high for a new authority, a lot of truck drivers now will be paying dues to the unions because NOW they are EMPLOYEES of a unionize company and when you are a employee of a company your employer have to pay work compensation guess who gets that money.I see people here talking how good is life with your own MC but they forgot how hard was to get a job with a NEW MC working for pennies you pay a lot money to buy you own truck now you have to get a insurance authority go into audits etc etc government are making all this to fill they own pockets. THEY want to make a law fine BUT GIVE PEOPLE THE OPTION DON'T FORCE THEM .
Ok if your sideline by AB5..your not a owner operator ..your a company driver who owns a truck ...
Just get your authority....not hard..
Owner operator have their own authority (independent)and lease operator don't have any authority(employee). Authority -tags,ifta and insurance in their name
It sounds like Really a good thing for owner operators because if the carrier they’re hauling for can’t get them a good load they have the option to immediately call a broker or another carrier to get them a load if I am assuming this is what’s going on. A lot of least drivers or owner operators can only work for contract with carrier I guess and not haul for someone else or possibly even for themselves ?
I am leased to a small carrier here in Michigan, and have done just that, but it is still run through my lease carrier. I have never had a carrier not work with me in this regard. You would need to have your own operating authority to do what you are suggesting.
Let the law take effect, deal with the consequences. Maybe Cali will vote in different representatives.
Standard Operating Procedure for Comyfornia
It’s something special in the water in Cali
Your insurance with a bad driving record that these lease drivers had . There dropping like flies insurance is the biggest thing . One accident in your truck are person car effects your insurance. They will quit because of insurance.
Has anyone thought about the long term in regards to how CA enforces this new AB5 law? Right now, an out of state carrier can operate in CA, regardless of the drivers pay status. But, I can see the day coming, when CA figures out they can go after out of state carriers for operating illegally in their state under AB5. It would only take a trip to the State IFTA office to gather the names of the carriers that have done business in their state. They gather that info, send out a questionnaire and it is all over, they start legally going after carriers and fining them for not being in compliance with AB5. And even worse, I could see them going for the operating authority of the said carriers that do not pass their ABC test until all fines are paid in full, or other financial arrangements are made to pay off these "debts". If I was a carrier, one that cannot pass their ABC test of AB5, I would cease all operations with CA immediately. I am sure there are carriers thinking this right now, or at least I hope there are.
That's already happening for outside carriers to who are leased on to people's authority.theyre getting together with weigh stations monitoring everyone coming in, Plates, mc # just like fuel tax, you have to show who and what you conduct with. As well as eld which shows location. Brokers or carriers will be updating people about that. Project44 through RMIS where you sign up as a carriers monitors my eld 24/7 if I want to continue being in the system getting loads. I'm from Chicago but go to cali weekly. Now also people don't realize they have to get signed up with uiia to do port work and that's a waiting trial of 45 days plus, now imagine with them being flooded with paper work.
I've been working in the logistics industry as a broker and on the 4pl side for 5 years. Really interested in starting my own business and building my own business.
wish you the best in your endeavors Keith!
Can you still get loads from brokers
Love the break down and explanation. Sadly so many are missing how to beat it. The last two points describe the exact type of business a franchise does. They sale or operate in the capacity of the business they bought or pay franchise fees to. So how to beat it?
Get your lllc, redefine the contract removing any and all words that say or are societies with owner operator, lease operator and contractor replacing them with franchisee. Add in a section for franchise royalties and honestly this can be a percentage of the load or a simple monthly payment or even broker fees. Your no longer a contractor or owner operator, you are a franchisee operating in the capacity of and doing business as truck company corporation.
Perhaps obtaining a dba instead of a llc would be another route. The truck is to become a franchisee and if California wants to stop that then they will be taking on major corporations such as subway, McDonald’s, Burger King, Brandon ford dealership blah blah you get the picture as it would force California to go up against the multiple billion dollar industry if franchises that makes up a large portion of our economy.
Seriously??? If you are that smart , then make it ease for yourself . Get your own MC and stop making those big corporations bigger and stronger !!!!
If you are thinking how to rewrite the laws and regulations, you must also understand that rouse lease operators and anyone who works under someone’s authority, is destroying this industry, right ?
We must think about this industry . We , the O/O can not compete with Mega carriers , because they don’t make money off freight , they make their money off you !!!
Come on smart people .
@@unperuanoenlascarreterasde9964 sounds like you should have signed on with a mega carrier before getting your mc. You would have learned how to operate and own a truck more efficiently maximizing profits and be able to still make a good profit for your self with the high fuel prices, crappy freight rates and competing with the mega carriers for business.
I can pay all my personal bills, save money and cover all truck related expenses including bidens fuel prices for $2 a mile, can you? When prices go down I do it for less than $2 a mile, can you?
I bet you answered no to those questions, which means your not as smart as you think.
@@russellhix6802 I did not mean to upset you . I’m not here to compete with you . I’m here to let you guys know that there is a better way to do business and it is not about ME or
YOU . It is about this industry .
Now , since you brought it up what you earn working for a pimp , let me
Tell why I’m 100% independent O/O
My equipment is paid off . 2015 cascadia . My Reefer 2018 Great Dane . I bought my truck in 2017 and I paid it off in 2020. I bought my Reefer in 2018 new from dealer and I paid it off in 2021 .
I run between 60-70k miles per year and I run about 6 - 7 k miles per month. Figure it out .
I go anywhere I want , I charge as much as I want , I stop and park my truck whenever I want and I’m not afraid of any handler that will get pissed off or I’m not afraid of getting fired .
I have parked my truck /Reefer since February 28 because rates got so bad . My trucks has been parked for
4 mi the .I was waiting for
People
Like you to wake up and realized that you were being screwed .
Did you gross 304,000 dollar last year with your truck ? Did you 64,509 miles last year ? Be honest . You can lie to me , but you can’t lie to yourself, do you know what I mean ?
So, you are not my competition , RUSSELL. I compete with myself.
I live a very simple life and I don’t miss important dates with my family , can you see the difference between you and I ?
Since I don’t have dents other than my house , I can run loads for 1.80 per mile , but I don’t do that . Do you know why ? Because I have ethics . Because I love trucking . Trucking , for me is a way of life . I’m not here to work like slave . I’m here to enjoy it , therefore I must take care of this industry .
I don’t agree with brokers rates and I refused to haul it because I have dignity ( look it up in the dictionary )
But , if you are happy doing what you do , the continue doing it .
Wish you the best .
I’m willing to share my experiences with you guys .
@@unperuanoenlascarreterasde9964oh I am not upset. Just making a bold point. Let’s say I go out tomorrow and grab my mc, in about 6 weeks it’s in my hands and I jump right on it. What’s my chances of getting the higher paying loads? None to very slim because the ink hasn’t had time to dry on my mc. It takes having your mc at least 6 months but 8 to be safe, before you can touch the better loads that have the biggest bang for the buck.
So why not be a company driver and get some experience. Become a contracted o/o learn some ropes and see if your own mc might be something your interested in while your saving up? Pay cash for an old school coal rolling beast and grab your own mc to run on your home time. That way when she breaks, you still got a steady income to make sure you don’t go bankrupt because all you can get with a new mc is crumbs for loads? After that old thing is purring like a kitten and you have a small but steady income monthly, your other truck with the company is paid off, and you have at least 8 months on your mc then say bye bye mega and hello big bucks while you look for a driver for the other truck and start off full time with two trucks that your familiar with instead of just 1 that you just bought?
I am where I am as it is all part of the plan. I won’t struggle with a new mc like 99% do and I’ll have two trucks when I leave the company instead of 1 and have a steady, although small, flow of cash each month and shouldn’t have to touch much, if any of my personal savings?
You made the assumption that I was just a dumb company o/o who hasn’t done his homework. I also realize many get to where I am and they realize they don’t have what it takes to become 100% independent or they don’t want to take the risk or deal with the head ache. Possibly they realize that they are uninsurable as an independent. I found a way to make that next step much easier than most have ever done and increasing my chances for success by more than 60%.
Don’t judge because you never know why a person is where they are and they may be under that mega carrier cause it as far as they can go for the time being or like myself, they have a grander master plan and are working towards that goal. You can’t honestly tell me that my approach and plan is a bad one.
@@russellhix6802 I totally understand that . Russell, look . I started in this business with 0.0000 experience. I did not go to any school for my CDL, therefore , no company wanted hired me , so I was obligated to become my own man and I have not regrets At the beginning my insurance was about 18,000 er year , about 10 years ago . It was very expensive , but I had to do it. It paid off .
Hopefully you get what you want , seriously bro . I wish you the best bro .
It is about lease operators because companies like swift werner etc screwed the leasee
How about you work save money for a down payment for a loan to get your own truck and become a independent contractor business. If you don't want to be a employee worker.
I believe freight dispatch services will be able to help the owner operators with the ones that have there own MC at least finding good freight helping him to do contracts invoice and billing even belong them with ifta So to take a big portion of what requires run a trucking company offer there shoulder as long as you provide them with great service
thanks for sharing! peace and prosperity!
Thank you Sir
Most of the owner operator will be out of job according to me.
It's not that easy coz of there language barriers. I have O/O's working with me have hard to communicate in english that's why they were working with me.
Other thing is most of them just bought the truck not a trailers and working with mega carriers by doing hook and drop program. They be out of job as well. This is going too effect them fs.
Are double brokers going to effect with this? Who book load on different MC and selling it on different.
Are brokers like Prime going to effect? Who book loads with brokers and sell it to small carriers under same MC?
For months I could see this coming a little at a time. The writing was on the wall...but most did not read. I've been telling people for a year...stock up on everything from canned meats to soap.....your pet foods to canned veggies and fruits. I told them the "grocery fairy" will not bring things to the stores for you people.
thanks for commenting Bobbie!
If the Teamster were still around. Like in 1960. The whole country would be locked down. BUTT and it is a big one that also meant the drivers made too much money and they demanded and got respect. Believe or not you HAVE to be a asshole to deal with a asshole. That is why Hoffa disappeared. It was not the mob that did it. Vegas was the prize. Now you have corporate gambling everywhere.
Oh and they also controlled their own retirement funds. Is it a coincident that soon after Fitzsimmons got jailed the IRA investment scam came along? How about all those GM workers that got burnt when GM got 'reorganized'.
Guess what UAW line workers do NOT get now? PAID Retirement, matching IRA, paid hospital and other stuff that is only for upper management, along with a living wage.
Management says unions are commies. But the reality is you are working on a plantation. The slave revolt was put down in the 90s. Only the E lites are supposed to enjoy the finer things in life.
INSURANCE--UNIONS --GOVERNMENT will make a lot of money with this new law. Insurance is sky*high for a new authority, a lot of truck drivers now will be paying dues to the unions because NOW they are EMPLOYEES of a unionize company and when you are a employee of a company your employer have to pay work compensation guess who gets that money.I see people here talking about how good is life with your own MC but they forgot how hard was to get a job with a NEW MC working for pennies you pay a lot money to buy you own truck now you have to get a insurance authority go into audits etc etc government are making all this to fill they own pockets. THEY want to make a law fine BUT GIVE PEOPLE THE OPTION DON'T FORCE THEM .
Freight rates will go up !! This half owner operators work for nickels . I’m happy this happened!
hmmm. 🤔
Lol no it won't go up.wont have any affect.
I'm sure u were the leased on that got tooken advantage.
Lol if you work for a company lol you are working for nickels.
Freight has to move, will see !
But Brandon here is the big question what if you are not in CA your business is say in AZ you still will be able to go into CA
I'm not sure...but I think it would only apply to businesses based in California? Anybody know for sure how this works?
@@brandonthefreightbroker If you are an Leasee w/o self-Authority and drive into California, California may fine you and then you have the hassle of fighting that.
@@brandonthefreightbroker Everything I am hearing is that if you do not pass the ABC test, and are based in another state, you must still abide by the AB5 law... On edit: After digging around for a bit... As an out of state carrier you can still operate in CA, no matter the driver's employment status. But, I can see CA sifting through IFTA records and going after carriers in the near future, looking for companies that do not fit into their ABC model and fining them for fraud, etc... Or worse, having their operating authority pulled for not only fraud, but other criminal offenses. Taking this in to consideration, I would honestly cease all business with any entity based in CA.
We need our farmers and truckers
The powers that be are eliminating both as we speak... It is all planned, none of this is by "coincidence".
🔥yooo, landed, we should connect man🔥
Will this effect only California 🤔
Illinois what’s up...y’all need to settle or get settled!!!!!
I love the new law
thanks for commenting...
They are testing the system how California handle it and owner opp I
thanks for commenting Om!
Richie brothers is it gonna even have enough room for all the trucks that are going to be up for auction White Volvo‘s for miles.
I've been wondering about that myself!!!
Question, real simple, yes or no answer, read carefully. As a truck owner operator, I own the truck, it is titled in my and my LLC's name. I am leased to a Michigan based carrier with interstate authority. In two weeks, will I be able to legally transport a load of freight from Michigan to California and NOT be in violation of the AB5 law?
I did some digging, if you are a resident of another state, other than CA, you can still operate in CA legally, no matter your payroll status. But, being old and a student of corrupt government, I could see the day where the state of CA will go back through IFTA records and legally go after trucking companies who operated in CA under this AB5 law that did not pass their ABC test. They could then go after you for fines and whatever else they can think of. And don't think for a minute there will not be some judge or the feds that will stop these kinds of shenanigans, they will rain down hell upon us because they can. Myself, if a carrier, I would cease all operations with CA.
Ur good for now it's a California labor law so only applies to California CDL holders if there lease operators. I'm a owner operator in California but I run under my own authority. They don't even know who well enforce this law yet anyways so it could take some time to play out.
Questions I'm a Independent contractor and independent service provider,, I pay my drivers W2 I do all the leg work pay breakdown pay taxes pay 401k pay truck notes etc I have an agreement with the Carrier that I use for years using there DOT number they pay me 1099 weekly Settlements where do you think I stand? I'm in California smh
independent contractor status will depend on the ABC test....if you qualify you're good to go as an independent contractor
So does this mean that if I have a truck driver with an independent business in California that I can go to Nevada and establish my business relocation in Nevada and still be able to do work in California such as the dryage port work
I know some lease operators here in California just switch there California license to a neighboring state license. The law says only California residents. Doesn't say anything about the business being in California.
Either you are a company driver or not. The lease crap was a joke with the Mega Carriers making a killing off tuckers. Unless you think the Carriers are doing this out of the kindliness of their heart. Wake up.
LOL those ppl don't give a crap about "worker misclassification". Those people already ran the numbers and found out how much tax revenue they were missing. That was the "misclassification" lol. That's how I knew they were eventually going to enforce this. Also people rejoicing in the potential destruction of LP guys pump your brakes lol. That's not gonna happen. All these companies got to do is rewrite their contracts give the drivers the ability to leave with the truck at any time in the contract. WHICH SOME OF THEM ALREADY WERE DOING YEARS AGO...
Young driver here. So here's my question. Ab5 was put in effect in california. Everyone knows that when a law goes into effect the other states will mirror that law in some effect. Mind you when I say this question I'm no fan of 1099. My question is why everyone is trying to avoid being an employee?
I understand 1099 does make drivers get more money for the work they do. But at the end of the year they have to pay the tax man.
Owner operators or at least purchase drivers have to pay taxes on the truck fuel and everything and then I'll back have to pay taxes on their 1099 at the end of the year. Was such a huge negative. How is this a positive?
I wouldn't being an employee be beneficial in the long run in the event of termination to get unemployment benefits without having to worry about if you're being eligible. Or what about the fundamental of paying for your social security. Keeping in compliance with the social security office so you can get your social security at the appropriate retirement age.
In my opinion ab5 kind of gets rid of the 1099 use that's run rampant in the industry. And that these carriers need to take responsibility for their employees instead of trying to cop out on little ins and outs of expenses. Like paying taxes for employees on the road and actually paying for paid leave all this other good benefits.
In my opinion , if you are no fit to run your own business as an 100% independent O/O , then you shouldn’t be in this industry as a leasing operator or operating under someone’s authority, period!!
If you are doing that , you are destroying this industry !
You are doing all the work and paying to someone else to tell you what to do ???? Seriously???
If you feel like being 100 % independent O/O is too much responsibility, then don’t do it , but do not drag us into this exploitation.
Think about that . Those companies who you work for are in this business because they are making billions off you , they don’t care anymore about making money off freight . So , for us , the O/O , how can we compete with them ? It is imposible!!
So , please get your MC and be your own man , be disciplined , be responsible, save your money and you will be happier !!!!
If you want to drive , drive for those big companies with goo pay , with all your benefits , drive for them with all your conditions!!!
Let’s help each other so we can save this industry !!!!
No trucks should be shipping to California!!
If not for Uber drivers this is not an issues..
Hello, I would like to ask how will this affect a leased on owner operator in California if the business they are leased to is based out of another state? For example, if you are a leased owner operator with a company that’s authority is based out of Iowa but they have local port work in California are you still able to work?
That is a good question, I can only look at Landstar to answer. When I was leased on with them, they told all of their contractors or "BCOs", that they had to either relocate to another state or LS would cancel the lease agreement as it would now technically be illegal in CA to operate under LS authority. It is very difficult to get any solid answers on the many questions being asked. And LS did cancel those leases for those that did remain in CA.
@@michaelwright1602 thank you for this response I really appreciate it!
@@G2wo I have done a bit more research on this, I believe you are no longer legally able to operate your truck, as you are now in violation of the AB5 law due to your residency, even though you are leased to an out of state carrier. You may find yourself in the same position many LS BCO's found themselves in, a canceled lease agreement. I would call your carrier, you may be screwed short of obtaining your own CA operating authority. The only other thing I can think of, and you will need to call an attorney/CPA that has payroll law experience along with this AB5 nonsense. Maybe, you can set up an LLC or Corp, the settlement check would have to be broken up, one check made out to you personally as the driver, the other check to your company. The check to yourself, must have taxes taken out, the other check goes to the company for operational costs. That is one way I think folks can get around this. But, contact an attorney or a CPA, it may be that the carrier you are leased to would have to do this vs yourself. These are uncharted waters. And who is to say they will not go after out of state carriers later on that use 1099 contract employees?
@@michaelwright1602 that’s what I was thinking it’s about residency because from what I’ve seen is this came up over state taxes not being paid and California missing out on that Tax money so I’m assuming it’s directly for California residents
@@G2wo I would seriously contact an attorney or CPA, run my solution by them and see if there is anything there. That is honestly the only way I can see you doing this legally, unless you are able to use a family members out of state addresss, but that also could land you in a fraud situation if they find out you are still residing in CA... Maybe park the truck until you can get some straight answers.
If your independent working with uber it affects you..
ok..thanks for commenting
Wouldnt filing IFTA, Federal taxes, licensing, and repairs be outside of the scope of a regular employee on the B prong.
That would be outside the scope of existing IRS rules.
@@matt89108 Wow, that was a stupid response. I stated a list of things contractors have to do to maintain their business that employess do not have to do.
Hi Brandon I appreciate you keeping us up with the lastest. I wanted to ask for your contact info in regards to a program that I'm apart of. It will help alot of your listener along with family and friends. Please forward best source for communicating. Thank you.
thank you Sam! info@alliancelogistics.net
Well hopefully they will figure out how to get goods delivered in California... Looks like they just shot their self in the foot with this bill. I think they could have come up with something better. Now the state will suffer right along with Truckers and Uber and Lyft drivers 🤦🏾🤷🏾
Get your own authority
Not that easy, and have you priced insurance as a new entrant? I know guys paying some outrageous amounts just for cargo and liability. Clean records, no accidents, that have been driving safely for years.
Is this law became active from now or still have time to approve
Unless another injunction is put in place, this is it.
AB5 is a good thing for truckers
This is all about TAXES
most people haven't figured this part out yet.
Is this law just in California, do what they did in Canada. You truckers need to stand up and fight. Crying about it ain't going to help. This is what happens when the federal and state governments interfere.
what about law and order? doesn't it still matter?
@@brandonthefreightbroker screw law and order do really think that the woke Democratic communists socialist traitors no anything about law and order.
better off being a company driver anyway
i know a company hiring company drivers
starting at 85 k
always going to be a loophole
always!😀
I already figured it out simple
So what now!
I gave about 4 options in the video...or blaze a trail!!!
Another way to interrupt the supply chain.
certainly don't need additional disruptions in this arena.
They make more tax revenue from a driver than a owner operator
Seems too early to speculate in my opinion. But lease operators are limited to the carriers that leased them. True owner operators run on their own authority. It hurts right now but will be good for trucking in the long run. Look at the bankruptcy rate of lease operators. Lease operators take on the carriers responsibilities without the ability to move outside the carriers loads, hence why the law is now putting the responsibility back to the mega carries. This will be good in the long run because I believe that just because this happened it doesn't mean that said companies don't still have those contracts so it's going to put the pressure on them to keep the lease operators as company drivers but in order to do so it will require good party and benefits.
Pay*
thanks for taking the time to comment nynemili!
Now we can delete everything!
You all new this move out of state daa I did and still drive my rig bro I moved out of California come on guys
cool!!😎
Trucking company's run rates into the ground in the past twenty years... and to compensate for the loss of $ they began leasing trucks to drivers. $$$$
thanks for commenting David!
I think this law will be a good thing in the long run it will eliminate mega carriers from passing the buck to these so called owner operators that lease purchase trucks from a company I call them lease operators because they are solely depending on the company they are leased to day to day operations. Not only are they taking advantage of drivers they are also cheating the government out of billions of dollars in tax revenue
I think this opens the door many states to follow suit and it should.
It will make these trucking companies be more responsible and increase rates
I’m hoping they’re only going to apply this to Ca residents there’s a grey area they don’t specifically say it’s just for Ca residents they said the whole state. So will that stop some of us leased on OOs from being able to deliver and pick up in CA? I live in NV but I frequently go to LA for loads I like booking my loads out of CA they have some of the best paying freight plus I love going to CA I was born and raised there I know that state like the back of my hand
Get your MC .
Truckers need to stop any business with California
Does bill gates get a repreve for his contract with McDonald's or wendys for being a contractor supplier of potato s might be a problem there
2:50
THOUSANDS OF AUTHORITIES AND LEASE PURCHASE SCAMMERS WERE SIDELINED AND TRUCK OWNERS SHOULD BE ABLE TO OPEN THERE OWN AUTHORITY
Go price the cargo and liability insurance as a new entrant... I have friends that did that, they are paying $30,000 a year for insurance as new entrants. Clean records and years of violation and accident free service. Then throw in the $6 diesel? This is not 30 years ago, or even ten.
Get your authority and insurance! And stop complaining.
Best solution is ha e full self driver truck. Problem solved.
It's not owner operators side lined.its lease operators and contractors lol.contractors and lease operators still have health care we have everything a company has so you need to get your facts straight.
owner operators more popular term than lease operators!😀
@@brandonthefreightbroker 2 different things
whatever floats your boat!!!😬
When I wash a young man many moons ago there werer no lease operators only tru blue owner operators
thanks for commenting Tim!
This affect only leasing owner operators and only in CA.. By now who know how many legs will grow from this AB5 .... Mmmmm
thanks for commenting Oscar!
Abuse by contractors brought on this law …
I think that's a big part of it! thanks for sharing fresh2def72!
I moved to Tx
enjoy!!!😀
Dont f… tx up like you did California
Will stop bankrupt.
Why does California keep coming up with stupid laws?
Brandon, the one thing you failed to mention. Just quit hauling in and out of the Comunist owned state of California. I currently know of ten trucking companies that won't even run there trucks in that state. It also boils down to one thing only businesses are leaving that state.
Safe travels and roads Brian and Cindy, "xtreambydesign with passion"
california, tax laws for leaving california to another state
Why are you so worried when ca can't get food meds household goods they die..more power to them.let them can people starve..
huh🤔
@@brandonthefreightbroker ca been trying for years to get rid of truckers ..let the people stare .not get meds.or any household stuff .what part of that don't you understand look at Port in LA man..
Just move out of California.... That state is just getting worst...
thanks for commenting James!
O just cut it.... you need to have your own authority not working under someone else’s authority...cry me a river!!!!!