GAME OVER! Thousands of Owner Operators Set To Lose Jobs In CA...AB5 LAW!
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- Опубликовано: 28 авг 2024
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GAME OVER! Thousands of Owner Operators Set To Lose Jobs In CA...AB5 LAW!
ATTENTION ALL Owner Operators!
Especially in California!!!
The new AB5 Law could eventually impact ALL states!!!
Don't sleep on this!!
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I have done extensive research on AB5. There are some major clarifications that need to be made to this video. AB5 DOES NOT apply to incorporated entities. The important part is to understand you have to apply the full structure of asset protection to be approved for the exemption. (1) You have to INC/LLC your trucking company. (2) You have to register an EIN with the IRS for your company. (3) You have to set up a business bank account using your EIN. (4) Your accounting practices have to show the business income is not being used for personal expenses. (5) All your licenses and insurance have to be in the business name. The point is to clearly separate your business entity from your personal entity. If this is done properly AB5 would not apply to you whether you are a rideshare driver or a freight driver.
Nicely done. Thanks for the clarification 💯
Great great info!!! Has this been fact checked by anyone yet, any attorneys in the house???
👍🏽👍🏽👍🏽👍🏽
Said perfect, it's that simple I don't know why know one else can not understand this
I just got out of trucking in December 2021. This is going to cause a major problem in California. Over 75% of trucks hate going into California already because of the unrealistic laws.
I unequivocally REFUSE to pickup/deliver...or even go into commiefornia in any capacity whatsoever.
The hell with that sh!thole state! (New York too)
Cali has its own constitution and laws, lol
Congrats on having the courage to leave the industry, I'm strongly considering it. What are you doing now?
This been around for a while now. It’s basically saying either get your own authority or become a company driver. It’s getting rid of lease on contracts.
What do you thinks going to happen when an independent contractor with his own authority faces a multi million dollar lawsuit for a fender bender ? Just curious
@@joearnone8138 that diver going to have to do what they have to do. Have proper insurance for a multi million
@@joearnone8138 it's the same with towing, small business owners. Insurance on tow trucks got so high a few big tow companies started an insurance company. I joined and saved 19,000 dollars for 2021 alone..
@@joearnone8138 Can you cite an example? How do owner operators that have their own authority do it now? This doesn't pass the smell test. If it wasn't viable, there would be no owner operators.
It’s saying stay away from California. The Supreme Court can take it up whenever they want. This also affects every construction sub.
Landstar said Fine...if you have a Cal CDL, if you want to continue with Landstar you either move out of the state and get a new state CDL or you won't work for Landstar. That is all.
These types of Companies will and have said enough, we are done with California.
There are many companies out there that take advantage of drivers. They make them sign contracts as independent operators to avoid giving them benefits but they make them work as employees! People from Eastern Europe in Chicago area are notorious on this type of business model! Trucking industry seems to be changing from bad to worse!
Definitely true
Word!
And there are those people who own their own trucks and WANT to contract to these companies.
Its one of those scenarios where they have thrown out the Baby with the Bath Water......Stupid.
Those over paid lawyers out there need to work harder and come up with a better option.
You are right bro those eastern Europe are bad👎
Real shit bro lived that way Fr 3 years shit sucks
Truck driving employees don't pay for fuel or maintenance on their truck,neither a owner of a company.
So much abuse in this industry…How about those forced to accept 1099 even they worked as a company driver but without any benefits?
This would potentially force an Owner Operator to look into running under their own motor carrier authority which is more complex and costly than just being leased on with a carrier. Good luck to all of the Independent contractor's having to deal with this.
Umm, he is talkin about the independent contractors because the big companies already give the employees that think they are owner operators the ab5 components. So he ia talkin about the independent contractors who have their own authority and lease their equipment to a common carrier or brokerage authority. Not the guys who get with a company and they believe they are owners because the company gave them a truck and said they are owners just because of a title within their company.
@@chubbytx1042 you don't need an authority to lease on with a carrier. Just a truck and proof of ownership, I did that for 24 years. But if they prevent carriers from having 1099 Independent's the only way they'll be running their trucks is by having an USDOT/ MC number of their own making them an actual carrier.
Ughhhh!!!! Having your own authority is HiGhly overrated 😫😭😫
@@chubbytx1042 lease operators run under the authority of the company that they drive for instead of having their own authority
@@longterminvestmentsonly4817 But he's wrong it specifically states lease operators not owner operators with their own authority
I’m against AB5, but something needs to be done about H2B visa drivers. These visa drivers and their companies are the ones going around lanes and causing massive drops in freight. They have an incentive to do so because they’re only here for the visa and currency difference. They’re ok booking $1/mile loads because $500/month take home pay, is a lot of money in the country that they live in. California, New York and New Jersey has tons of these visa drivers. The SEC in the investing world, is not like the FMCSA. The SEC made it illegal to trade securities if you’re not a US citizen, and you can’t even use US brokers if you are outside the US border. There’s a lot of red tape waiting for the FMCSA and DOT.
Agreed!!
Exactly
I agree
Indeed!
Agreed bro
This law is actually great. How can you call yourself an O/O if your running on someone else's authority?🤷🏾♂️
I understand your logic! thanks for commenting!
Basically just get your own authority!
I could be wrong but even if you get your own authority you still get get work from the carrier bc that would fail the ABC test bc the work is too similar? OO would have to work directly with brokers and dispatch themselves from my understanding
This is a good thing. It means get a real authority or drive for someone. Eliminating the scam of leasing a truck
thanks for commenting!
if truck drivers stopped hauling into California and start dropping at the state line all this would stop but you know greed runs everything
It goes to show you that nothing is guaranteed when it comes to earning a decent living. I remember a bout 10 years ago that I was told that as long as I have a good driving record and a clean background and my CDL is in good standing then I would have a job for life! Well, so much for having a clean background and a clean CDL? Benjamin Franklin said it best..."The only thing that is guaranteed in life is death and taxes."
nothing is guaranteed!! (like) 😀
Hell my Father told me that when I was young! I still live by it today.
Wise old man once said: "degrees of separation is a good thing" and pertaining to this; he may be right.
-hell idk
When government is involved you know it's fuked up..
It’s time for the people to take back and stand ground for laws that tyrants pass and the people don’t pass.
hi man so this law effect lease owner operators or owner operators that owns his truck and equipment thank you
This AB-5 law is why a law to own an AR-15 is necessary
I believe that the AB5 Law was also created partially in part for Uber & Lift drivers seeking employee benefits from their respective companies. I drove for Uber once and never saw the need to be an employee. Why would anyone? It seems to me like that just defeats the whole purpose.
thanks for sharing your perspective!
If a company does not employ drivers and only dispatches freight then it can contract drivers.
A few entitled people who think the money they get paid isn't enough. Socialist States are good at creating victims.
And as an Uber driver, you could also work for Lyft, or do food delivery, etc. Lease operators are usually stuck to one company, who owns the truck they lease, and who also controls the flow of work they get. All of the negatives of being an employee, while bearing the burden of 'owning' a business, and none of the benefits.
@@sbrazenor2 | Amen brother!
A concerted effort to crush the little man and limit the number of entrepreneurs.
This law is not about crushing the independent owner driver's operating as a business. Its about being a genuine correctly paid employee or a an independent contractor.
As a former trucker who has been ripped off by those companies that lure drivers claiming you are an "independent contractor" but in reality, you're only a slave to a single company, AB5 is great news. You are not able to lease a truck and choose to pull for other companies. Landstar, Schneider, and all the others will lose the fight. Bet on it! This came about because the interests of states were being trumped by the interests of big business. States were on the hook for social security, medical, and worker's comp while big business reaped in loads of profits. The independent contractor status was fast becoming a tool to avoid paying out insurance for workers, thus the federal government took notice and in particular, the IRS. It is important to note also, that California, New York and Texas are bell weather states, which mean that national law almost always follows whatever laws are passed in these states.
Being an independent contractor on a factory floor, or something like that, it would make total sense because they would make pennies outside of this law. So i understand it. As far as trucking, theres big money in being independent. Its up to you as the O/O to choose if you want to use the money you make to buy your own health insurance or contribute to your retirement. Works good for nurses too, ie travel nurses. But in a typical factory or place of employment where all tasks are preformed under one roof, its understandable to enforce it
why has fuel increased as much as it has, and freight rates have gone down? who is pocketing the carrier's money?
Well explained and broke down thk you 🚛🚚🚛🙏💯💥💥
A MAN WITH A GOAL
il y a 1 seconde
hi man so this law effect lease owner operators or owner operators that owns his truck and equipment thank you
I was a contractor for a govt agency doing the same job as employees. There was very little difference what I was doing and the employees.
You know I have one question for the same people loving politicians, where is the law to protect humans being replaced by AI, Robots, Algorithms and Drones? How about nowhere and NEVER?
Landstar is different. They have a load board. We can choose our own loads there.independent. contractors are independent. In case of other companies we have to take dispatch from that company. Which limits independence.
thanks for sharing manavgeet!!
Exactly!
This ab5 only applies to truck drivers it doesn't apply to taxi cab drivers doordash drivers Uber Lyft it only applies to truck drivers I'm truck driver I've been one for 40 years this government is f***** up I think all the truck drivers in a small trucking company need to stick together and fight back I live in Nevada there's no way in hell I would live in California I refuse to go into California this is really going to hurt like the drivers that go into the the shipping yards and get shipping containers they talk about not getting their stuff now wait and see when this happens we'll be lucky if they see something within 6 months this is literally going to shut the whole thing down people in California should be idiot politicians out I don't like Republican I don't like Democrat you know damn well these politicians who did this are getting paid to do this by lobbyists special interest groups these politicians need to be removed from office
Totally agree, they're some sick fuks
This law has always been in existence. If your a 1099 worker by law your supposed to be receiving the money directly from the source, not receive it from a middle company. If your receiving it from a middle company then you work for that middle company and receiving a paycheck from them. That convoy stunt along with the parking trucks in front of the Whitehouse had to come with repercussions. Anyone who grew up in any ghetto knows the system always retaliate everytime you challenge it. Truckers have awaken the sleeping giant and it is on the prowl. Wasn't it the owner operators who orchestrated the convoy? Wasn't it the owner ops who parked in front of the Whitehouse? Didn't the fuel prices shoot up the minute the owner ops decided they were going to drive from cali to DC? Like I said, the sleeping giant has been awaken and he knows how to play chess very well.
Park the trucks for 2 weeks and watch the big man fold 🤷♂️
@@purpskipiff6296 I say it park them for a month. A week surely hasn't worked
Gas prices are set by Global Markets and OPEC+.
@@Simonsays7258 and jobama declared war on oil companies the first day in office?
Man if all the truckers were on the same page, man the things we could do.
Landstar doesn't have company trucks per se. There may be some agents that have trucks. Interesting to see how it will effect them and the BCO model.
thanks for sharing
My suggestion to all drivers is to stop till all shelves in store are empty
thanks for sharing Joseph!
What is the REAL goal behind them doing this? it seems so ridiculous!
Owner operators won't be able to contract with brokers that have an Mc number because that number technically makes them a motor carrier.
Thank You
Dude, Just stop. AB 5 codifies into a Labor Code statute and has a business to business exemption. As long as the owner/operator has their own authority, business license and markets themself to the public, they are fine. The only ones that are at risk are lease/operators. The Supreme Court has already declined to hear the case, so the injunction has been lifted.
Also, doing "Power Only" might work. The main thing is that you will need is your own authority, business license, ein, etc.
But even with your own authority, from my understanding you still can’t work with a carrier that gives you work and dispatches for you bc it’ll fail the ANC test bc the work is too similar. Maybe you could shed some light in that
@@tricallyourmama The AB5 Business to business exemption allows business service providers who are established as “a sole proprietorship, partnership, limited liability company, limited liability partnership, or corporation,” to enter a contractual arrangement with a business. So, basically, as long as you have your authority, your business licenses, and work for more than one company you are driving for, you should be golden.
In addition, there is another bill in the assembly AB2257, which is going to really clarify some exemptions. Upon taking a quick superficial look at it, transportation is definitely on the "radar". I'll be keeping close track of it.
@@scottroe3375 I tried reading it in depth but couldn’t find any article that has the full law laid out. Would you be able to provide a source with this info? If so this would be a perfect scenario for most truckers.
Thank you for sharing your succinct analysis.
thank you Aaron.
This is a job killing law, truckers don’t want to be employees
Sounds like they want to reduce the deductions and make you pay more in TAXES.
Not trucking, but in Kentucky independent contractors must meet many rules to be I C. Example, I hire a mechanic on commission and 1099 at end of year. I cannot tell him what hours to work? What days to work ,what clothes to wear & etc..
A lease operator is different than a actual owner operator. They are not a called a company.
1 problem is drivers paying taxs on earned income.They are outlawing 1099 jobs which usually results in drivers owing the IRS
I'm a trucker I just want to say this law is stupid it benefits politicians and hurts the truck driver trying to make a living all politicians do is make laws against the poor man when something doesn't go there way it's sickening they should've made laws against the companies restricting what they can and cannot do to drivers as far as treatment laws that make them treat us like human beings not robots not take our rights away as lease purchase owner operators 🤢🤮🤮🤮🤮
I bet the big carriers in California are smiling right now. My how that lobbying money pays off.
If you don't have your own authority then your are not independent.
Will it good because I watch loads go from 1.50 /mile to 50 cent/ mile seems like they manipulate the pay.
You have to get your own authority find your own work from a warehouse/ warehouses as a single truck or truck and trailer and be able work with multiple warehouses
These companies need to go under water asap here I go cr england/knights/warren/Swift Transportation/prime/jb hunt/
This is to keep companies from misclassying employees and under paying independent contractors and treating them like employees and under paying them
If this is so, then this law should protect their drivers!! Because my husband drives and his boss overcharges my husband's for everything!! Until the point where he has forced me to learn the game of trucking dispatch and brokerage!! My husband works hos butt off and treated so badly! Every dog has his day, but as for my husband and me, we will learn to work for ourselves!! Good luck to you all.
64 years . .. ..🎩 ,and don't get me wrong brother ; it's just the future. amen 🇺🇸
Can't use brokers anymore in California
I hate California for a lot of reasons. Their regulations are horrendous. That being said, the main problem in trucking is that lease-operators have turned into modern indentured servants. You're stuck to a company (like an employee), but they control how much you can make, and you can't create a side-business with 'their' lease equipment. You also have a lot of tax and benefit issues that employees don't have as a lease operator.
I have a Bachelor's of Finance and I still refuse to be an owner operator. I work for a company, make $100k per year working M-F, days. I have medical benefits, etc. The company has the job of drumming up the work, maintenance of the equipment, dealing with all of the administrative aspects, etc. I come in, bang out my schedule, and leave. For that, I get paid relatively well, and have fewer complications.
Pretty stupid all those drivers needed was an accountant to set up payroll and get their business as a subcontractor to pay taxes and social security and get themselves benefits like healthcare
thanks for commenting
Landstar just wont run in CA and im glad i have my own authority less dumb truckers on the road more freight for me to move
Should of put Elder in office during the recall. Who's fault is this.
If independent contractors have to be employees next time there's a pandemic we all would be home collecting unemployment.then this nation will come to a stop.
Amazon and Walmart need to step up and help owner operators out
No, owner operators need to help themselves. If you don't look out for #1, then to everyone else, you are #2... And #2 is shit. Why do you think Amazon and Walmart give a fuck about owner operators? As long as their freight moves, they're happy, and for the time being it moves.
If you're an owner operator, you need to cultivate a book of business that's going to serve you. It needs to be plentiful, profitable, and punctual in payment. (Some guys allow 90 day receivables, but diesel needs to be bought today.)
@@sbrazenor2 im talking about reaching out to the politicians bruh and high level people we can't get to, bezos is worth billions im sure any time he likes he can speak to any one of these individuals, I think you misunderstood my whole comment
@@sbrazenor2 FedEx walmart and Amazon subcontrac to many owner operators, whats bad for us is bad for them so they need to reach out to high level individuals that normal folk can't get to
@@sbrazenor2 and for the record I been driving 13 years and have done very well, along with 100 other people im aware of in this industry we are some very hard working people who take pride not needing handouts from any one we just need big government staying out of our business and pockets, misunderstood me bruh
@@Geronimoosceolamaccabeas you think that in this case having a common enemy makes these companies your friend, but it doesn't. If they get a legal carve-out for truckers, it will only be for exploitative purposes. Some people will still make money, but it could still be bad for a lot of people.
Since I neither live in CA nor do business as a contractor, I have no skin in the game, but I do hate to see drivers get screwed.
They have to get their own authority
This will impact Californias economy greatly
thanks for sharing!
Update: US Supreme Court has declined to listen to the challenge to the AB-5 law. As of me writing this, the law has taken effect. It will not be enforced at the DOT (truck scales etc.) level but at the USDOT Audit level.
New Jersey has a law like this in the works called s4204 (it most likely will pass)
wow...hadn't heard of that one before...thanks for bringing this to my attention.
Thanks for the information
thank you!
Just get your own plates and authority
Man look, it’s a wrap, but there is always some way around it. Self driving trucks are a bigger threat than the AB5.
Back office duties are above and beyond the company driver scope of operations
This will go nation wide when more and more AV's hit the road. Companies are preparing for their next big step now.
Gary Bregel
0 seconds ago
Can the Owner Operator move his address to another state and still work in California.
I never hauled a load to Cali nor ever plan on it. I mean you guys should've left Cali long ago
There is a difference between an Independent Contractor and an Employee for a Company. The California Legislature needs to put in a Provision defining the specifications. Most independent truckers form an LLC to Protect their assets. The Legislature should exclude LLC’s from the Law.
I don't understand why the AB5 law in the State of California hasn't been challenged by the U.S. Constitution, Article I, Section 10, which states: "No State shall... pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts...." Provided that the U.S. Constitution is the Supreme Law of the Land, this AB5 law in the State of California can be strucked down with the legal challenge of the U.S. Const., Art. I, cl. 10. In other words, no state has the right to interfere with the "[o]bligation of contract" between individuals. Food for thoughts! 😂🤣😂
most if not all freight brokers only deal with authority based carriers, who run their own dot numbers, not sure why they would deal with leased owner ops, they can’t for obvious reasons.
I recently was in an argument with a guy that never been to prison about prison.
I was telling him that many prisons are about punishment.
He was telling me that prison was about business and free labor and never mind the many inmates that don't have a job and all the jobs and industries in prison that only support prison and trades that actually teach a trade. Same on the streets. A bill designed to affect the small operator and or novice trucker in my opinion.
If trucking becomes more expensive for the big companies I believe it will mainly effect the little guy.
And the government can also collect a payroll tax!🤦🏽♂️
Ok, so im assuming that everyone is generally confident AB5 will NOT spread to other states. There hasnt been anyone talking about it at all. All I can find on RUclips is videos several months old or even YEARS old.
Can those CA owner/ops switch over and get their own MC Authorities to stay in business?
possible...not sure what happens with the lease yet though...
The purpose of AB5 is to protect workers, corporate America/big business look after their interest first and foremost. If a company is not doing well, a way to make it seem like it can boost it's profit is to get rid of workers.
Truckers should be careful as to what this means. AB5 may actually be in truckers better interest. Landstar seems to be acting more like a frieght broker/dispatch service, so even if AB5 passes, it shouldn't be difficult for Landstar to transition itself into a stand alone business that offers these services to independent owner operators. What Landstar may have an affect is on Landstar's dispatch service if Landstar is solely viewed as broker. The loads will still exist.
In as far as Uber/lyft, Uber should be required to get these people health insurance, unlike truck drivers, Uber drivers can't simply go independent, they are technologically linked into this company as nodes.
Should towing motor clubs also pay benefits to contracted towing companies, such as AAA, Geico and others. Just asking for opinions?
Interesting perspective
Leasing on to a company to be an owner operator is not the same as ownership. You can't quit and take the truck with you. You don't get the befits of ownership. That's exactly what this law was made for. Basically if you sign a lease the truck is yours and your name needs to be on the title as owner. Not unless you meet conditions abcdefg doesn't count as ownership. 1099 as a truck driver does not constitute ownership. Apparently no truck driver really understands what being an owner really means.
But ab5 is against strippers, electricians, plumbers, real estate agents, brokers and etc. but as a landstar bco, landstar will not go against this. Even in 2020 they told us to not get loads in California or leave if u dont agree or get another address. I had to move to texas because this isn’t something that will not go away.
This sounds like a major lawsuit to me.
Truck your AB-5. we as truck drivers , will boycott your state!!!! Don't cry when you have no food or clothing!!!
Put me out of business totally
Great info. I know some carriers have already gave their lessees the option to relocate or cancel their lease.
thanks Zedrick! thanks for sharing this info!
I thought it only pertained to lease operators for companies like prime, swift and schafer. I think its great stopping these companies from being truck sellers and lowering freight rates🤷🏽♂️
So - how much produce will rot in the fields of California because they cannot find shippers?
will be interesting to see how this all plays out!
No it only apply to 1099 ppl and lease owner operators
Feels like a way to push out independent owner drivers and forcing them to be company drivers making way less and making more profit for big carriers( swift, jb, etc). Just one constant undercutting on American truckers profits and increasing the monopoly, power, and profits of a “big trucking” since Carter
This is nothing new and won't hurt, "TRUE", owner operators nor the contracting system in which they currently operate under. FedEx Ground has already laid out the model for working around AB5. They converted all their, "Independent Contractors", which are still treated and controlled as employees, into contracted corporations. All the contractors had to create an LLC or other type of corporation in order to stay with FedEx Ground. It's a very simple process and in turn, FedEx Ground no longer has contracted, "individuals".
As for Landstar, I really don't understand why you brought Landstar into this mix, because Landstar owner operators are the only type of trucks and drivers that they use and do NOT control their owner operators like employees, in terms of directing them when to work and where to work and what to where and how to perform the services, like FedEx Ground does. Landstar allows true freedom with the privilege of working under the their carrier credentials, for a nominal fee, of course.
This A-B.S. is for companies that use employees, but tag them out of social security, health and other benefits by labeling them as independent contractors.
I said it's great because I used to work for an Indian company as a company driver ,but then I found they were using me as a independent contractor., working under 1099 driving their trucks and at the end the only one making money were these guys.,,, absolutely agree with this.,,,
I Just Became Freightbroker Passed my finals And I'm A X Truck Driver know alot of Owner Operators ogosh Waiting for my certification ..
super big congrats Noel!! all the best!
@@brandonthefreightbroker Thank You So Much I appreciate you and I have learned alot from You
It's simple be 100% your own company, own authority and use these companies as brokers come on guys
You mean use carrier as broker? Doesn’t the carrier that have an mc be considered the same as an OO with their own authority? If so that means they fail the ANC test. Maybe you can help me better understand
@@tricallyourmama basically the company you haul for needs to become a broker as well , which means get thier broker license, so that way they can broker you the extra loads they have and if you have your own authority and corporation setup you are a separate entity which makes everything legal thier are loop holes for everything
a lease operator isn't a owner operator. learn the distinction and who it actually affects.
student of semantics??? owner operator has only one meaning? how about owner operator is a person who OWNS his own truck and OPERATES his own truck....try that on for size...you don't need to let me know how it fits! 😀😀
You're interpreting it all wrong. They're saying outside the scope of usual operations. Meaning the company can't have say over how you operate or treat you like an employee
Bro all they need to do is have their dispatcher book loads under their MC. Or move their CDL to a different state.
People need to stop panicking.
I don't think it's panicking at all...we're talking about a LAW...It starts out in one state and other states apply these LAWS as well...for example when Roe/Wade was overturned I think the number was 29 states that banned abortion....more will follow...so when you see a LAW that could severely impact your business model it may be a good idea to start planning and preparing...thanks for commenting!
It’s not where your CDL is based out of it’s where you pay Taxes. You have to register all your calls , bills, lease agreement/ mortgage ect. Your talking about avoiding taxes in one state to another it’s a very hard process without actually moving!
@@andrewmorrow4312 if you want to stay in business you make it happen. It’s a PO Box / suite / apartment n another state, change address on bills. Really not that complicated. Plus most of these dudes using dispatchers are getting ripped off blindly & they don’t even care or know.
@@brandonthefreightbroker only the president and congress can regulate interstate commerce. Roe vs wade was never a law
not true, alot of people is not reading the law, yes its long to read and its just saying u have to have ur own authority, where u have more control
Landstar is not based in California so ab5 will not affect them.
Hey Brandon, the supreme court just bounced that injuction today 6/30 so AB5 is back alive, so the fight is on again in CA
You can make $25 to$29 an hour as a local driver use there truck and trailer they pay for the fuel and maintenance.it’s not that bad over $60,000 a year and bounes
Why is there a problem, as independent owner driver's operating as a business or sub contracting is a worthwhile activity. So long as they know their costs, and the billings enable a profit . There should not be a problem for genuine owner drivers. But if the driver is a defacto contractor to avoid employment costings for the prime contractor with low pay for the driver saving money ,the law is required. Honest brokers and operators in a mutually beneficial free enterprise relationship should be respected.
This law is all about tax & revenue for the state. California has a gross domestic product of 3.4 trillion dollars. The most of all US States.
You best believe the State of California has already calculated the amount of increased revenue it will be entitled too. This will not end with California. This is just the beginning....the more they see the more they want.
I don't understand why truckers don't have a union.
They do have unions look at UPS
I dont see this going into effect...
1. All *lease operators* would have to become *owner operators* at quite a financial expense to them
2. or the lease operators would have to become *employees* at quite a financial expense to the company.
Quite frankly I see nobody running loads in or out of California.
Yup, this by design as CA is paying the most money right now too.
It went into effect
This started with Uber drivers. If 1099 sucks, give benefit to your driver. Lot tick bait right now you tube saying Is Over to Owner Operator. You own a buisness take care your empoyees.
U can still contract with then if u run ur own authority
That’s what I thought too!! My understanding is you can’t work with another carrier bc they also have an MC. The work is too similar and doesn’t pass the ABC test. Correct me if I am wrong pls