AB5: The Event That Will Change the Face of Trucking (As We Know It!)
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- Опубликовано: 30 июн 2022
- AB5: The Event That Will Change the Face of Trucking, As We Know It! The Dreaded AB5 is now been introduced officially in the state of California. Dave gives the details of this important event and how it will change trucking.
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Hey there Big Strapper. Big news in trucking! AB5 becomes law. Give us the down and dirty of how YOU feel about AB5. Will it affect you directly or not? Love to hear from you!
I heard a smart trucker once say regarding lease operators " you're a company driver making THEIR truck payment for THEM."
Yep. That's why I've never done it.
Now about the people who got student loans for college. I didn't do that one either Same deal the states SHOULD go after the Student Loanshark people as well. But will States sue the states universities for being crooks.
Let's hope so.
This guy is the only man that made this makes sense. Im not so mad now that it makes sense.
As a former Schneider lease operator, I'd be glad if this decision shakes up their ability to lease trucks. Driving for them was the worst decision I believe I've made in my career. Too much drama and too many issues dealing with SFI when it came to maintenance. As much as they wanted me to recommend other drivers to them, there's absolutely NO way I could ever consider telling someone to go through the same thing I did.
As a company driver with no desire to EVER own a truck, this means little to me. It’s great for certain people, but I’d rather hear about drivers getting paid for ALL their time plus overtime. No more exemptions that turn us into slaves.
I believe it was several years ago that you said, "run, don't walk, away from a lease, " then proceeded to explain why.
I was an OO from 78 through 93. I did well for most of that period. Owned several Petes bought my house... by 93... I was refusing loads because they didnt pay enough. Ultimately leaving my truck sit 3 months while I started a fabricating co with a friend. Making $1600/ month payment on a parked truck.
I think these lease purchase agreements came in around 1990. I remember hearing about this and thinking what a screwing it was. Having been around long enough to know the business I thought of it as a scam for new guys that would end in 100% turnover.
I ended up back behind the wheel running low bed as a co. driver for another 10 years. A good job. But got out again in 2007. Never looked back.
At one point nearly everyone I knew was in trucking.
When I first read of this AB5 it was an article from ATA. I knew they would be full of it.
This is an honest accurate description. Ive always found Smart to be a solid source that I agree with.
I would add 1 thing.
It might be a bump for trucking short term. Bad for some...BUT.... I believe these lease purchase scams destroyed much of the OO fleet as it existed through the 80s. With real independent drivers with proud beautiful trucks. Making a solid middle class income doing what we loved...
I hope some if you guys are still out there doing that.. but what I see traveling Rt 78 in Jersey here is junky trucks driven by amateurs who dont know enough to move left when theres a guy on the shoulder... and dont know enough not to literally ride the left lane like a 4 wheeler.
I feel for you real drivers. Your truly the last of a breed.
At 66 Im finally just letting my commercial license lapse. But I still identify as a driver...
I remember when I worked in construction, & was considered an independent contractor. I always felt the company I worked for was taking all of the benefits and left all the liability to me. No vacation/sick time, no 401k, 1099’s, etc. on top of that, had to pay self employment tax from the small checks I was getting.
My hope is that all drivers will get a better way with better pay.
Stay strong drivers.
Folks out here like me (that are not or no longer drivers) that appreciate your service.
Keep on keep’in on ;)
Owner of company I drive for is a nice enough guy, but cheap. Kinda like working for my dad when I was younger, but at lthis guy pays me. He recently increased my pay by about 30%, says he's going to get me another increase in the near future. My buddy thinks the guys is afraid I'm going to leave, he's probably right. Last job I had......actually last 2 jobs I've had, actually gave me early raise in appreciation of my efforts. Plus....I didn't drink or do recreational drugs. The owners were the kind of people you really did want to work for. Good people, not taking advantage their employees. Plus, the mandatory desert trips were awesome.
Thank you and your welcome from this trucker
Thank you ☺️. I thought it was a bad thing for us. You are appreciated 👍
@@leolauzon9205 👍🏼
Thank you brother, I'm a 2nd generation trucker and gave up my authority last year after 12 years being independent in California. Currently a Costco fleet driver. I greatly appreciate what you do for our community.
I'm a second generation trucker
Dad's been there done that 60 yrs
He's been a true independent own authority since 1980
Had up to 3 trucks at once.
I've looked at leases for time to time
I NEVER could make the numbers work.
Remember HOUSE/Family comes first
Then Truck
Then you if anything is left
Truck is FUEL maintenance/permits and TAXES. So thanks to my Dad for showing me the "backside" of this industry.
Lots of drivers complained about the new law but in reality it is a good thing to happen. Most of these mega carriers have been preying on new drivers who have no experience in the business and buy a dream just to fail and enrich their predators. It is infuriating that most of these contracts were the famous never, never lease programs where carriers would stop giving drivers loads to haul when close to paying off their trucks just to force renegotiating a new scam contract.
As a retired trucker this will be very interesting to see what will happen within the next six months...
I did a lease purchase with Schneider in 2015, got a new Freightliner. I paid the truck off in a little less than 5 years and never had a problem with them. I'm on their Choice Program where I choose my loads from a load board, go where I want and when I want. If you are going to lease a truck from a carrier, you need to be able to choose your loads, if they are dispatching you they are controlling your money. I've been driving otr for the past 15 years, the last 7 as a independent contractor and I'm happy with what I got.
This is why it’s so important to teach our kids critical thinking skills. I knew about the AB5 for awhile and knew that drivers in California were mad about it. I didn’t know about the other side, why California passed this law. There are always two sides to every story and you should listen to both sides before you make any hasty judgement calls. Thank you for this video. 🤙
Nice and clear explanation. Best I've seen so far. God bless this chanel, your trucking tips and keep rubber side down everyone.
That's great to hear Dave, now the trick is to get companies to pay a driver enough money to compensate for inflation. The transportation industry runs commerce, and the operators should be paid there value.
Thank you.
Whenever I’ve heard/read about this, all I’ve ever gathered based on the information provided (which wasn’t much) was that this needs to be overturned and that it’s terrible for the industry and thousands will be out of jobs. But once it’s been properly explained and the history/reasoning behind it has been cited, it’s easy to see the truth in it. Again, I thank you for the information you provide
It's one side of the picture. For myself I have leased my truck onto another carrier because the 10k start cost to get my own numbers is just out of reach for me especially now with fuel so high and rates so low.
Hello sir, you did a better job than FREIGHT WAVES at explaining the situation…….I have been watching your videos for many years now and I have learned a lot over the years from you. Thank you very much for your educational content you produce.
I seen a thing on freight waves the other day. They had a broker bragging about how he got a load moved from Seattle to Wisconsin for $2 a mil. I plotted the route using Milwaukee as the destination
And $6 gal avg fuel and 6 mpg what my truck gets the rate was the cost of fuel to the penny. Why are we still back hauling for fuel? Ladies and Gentlemen We can do better.
The tragedy is this, guys like myself, who own their equipment outright, that like the arrangement we have with a carrier or brokerage, are being punished. Thank God I do not live in California. I get what Dave is saying, and agree to a point. Where he lost me, is where he says just run out and get your operating authority. Well, has Dave priced out cargo and liability insurance as a new entrant in today's market? I lease to a brokerage for this reason, I know the costs, and am not willing to pay the outrageous amount of money they are now requiring for simple cargo and liability. If you look at the history of this AB5 law, who wrote it, all of the carve outs, etc. This was clearly targeted at trucking, and I am not a fan of all of the bad actors, and there are plenty as Dave stated. I am speaking of the legit guys that own trucks and find it advantageous to lease to a carrier like myself. If this was a fair law, there would be a carve out for guys like myself, that do prefer leasing to an entity for the obvious benefits it affords us, which are many.
BEST explanation of this new law I’ve heard! You’re a great communicator! Thank you.
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.
Better explanation of this situation than I've heard anywhere else. Thank you.
Very good perspective on how this came about. I’m glad they’re not allowed to do these ripoff programs anymore. I agree that it will be better in the long run.
Exactly, someone who knows what there talking about. This is a good thing for the industry. To many drivers being mis classified for these trucking companies greed.
Time to hold the carriers accountable! If only the employees paying into the trucks got something in return.. how about stocks and additional benefits
I love to hear someone who can explain very well the government's decision and. As an ex truck driver, i love it. I stopped trucking on the plublic roads in 2006 and i didn't know how bad those leasing programs became and i am happy to hear that one government in North America actually did something about it.
Thank you for taking the time to explain it thoroughly.
Thanks for the great explanation. Cleared my thinking on this subject and made me feel a lot better about what was happening.
Nothing more dangerous than an educated Driver. Especially to a dispatcher .
Sorry had to throw the dispatcher in.
Thanks for all the very important information Sir.
Take care,
Rocky
Great insights! Thank you for sharing this and for what you are doing for the trucking industry. I am very fortunate to have worked in the trucking industry for over 20 years and am hopeful for a rapid and smooth transition. Like you said, this is likely coming to other states as well.
Thank you for the clarity!
Thank you so much for adding clarity to what has become, like so many other “issues” in our society, a political and personal fight among so many! I appreciate your understanding and insight as although I’ve been driving for a while now, I don’t have 20 years in the industry.
Let’s hope that others will gain a deeper understanding of what you have stated here and we can all move into an era of growth not only in driver income but of a mutual benefit to all as well. Take care and keep at it. You guys do a great job!
Thanks again,
Tony
Finally! Someone who knows how to explain shit! Thank you! I'm pretty new to the whole OTR thing. I took one look at a lease-op deal and thought, "This is bullshit!" Now I understand why this (AB5) is happening 2-fold. Thanks again, Brother!
Yes bullshyt lease purchase programs caused this.
This guy knows what he’s talking about. I’ve been so busy driving lately that I don’t ever get a chance to read up on these kinds of things. But thanks to you, I can watch a 10 minute video to know what’s going on.
Great explanation, thank you for taking the time to educate
I am not in the trucking business but I really enjoyed your video. It was very helpful in showing me some of the inner workings of your industry. Great job and keep posting for videos for those of us who are consumers and need to know more about what you do! Great job!
This means in CA someone fresh out of school won't be doing 70+ around the public in a puppy mill lease truck... Do it in all states!!!
NOW this make sense to me and yes has been a LONG time coming, and yes I think this will spread to other states.
This video made my day. Thank you for making this information plain and clear for us drivers.
thank you very much Dave this is exactly what I been saying for long time
The companies are telling their lease drivers that they must move out of California to any other state to be able to keep driving for them.
What if they don't live in California but lease and go there constantly
Good question ⁉️
Great Information Thank You!
Informative report. Thanks
Thank you for your good vital advice I'm staying just a few miles from Canada and I sure appreciate you guys. Right across the Great Lake in Medina New York
Finally! Someone to help it make sense and get us past the disinformation campaigns from deep pockets. This guy... THANK YOU! ❤️
I believe this law will be good for drivers. We got screwed when we were younger here in Nevada working under Apex bulk commodities. My poor husband was running 2 loads a day for them. And every day one load went to them outright. He was gone 17 hrs a day. We lost so much money because we thought it was so hard to get our own authority. Now almost 20 years later we have our own authority and realize the huge mistake we had made.
I almost went to work for Apex in California (they're based out of Victorville/Adelanto), glad I didn't
Thank you for such an informative video
Best logical summary on RUclips. Thank you.
AB5 is an awesome law. I do not know why people dont see this. You cant be a contractor when you have to please a BOSS. i mean for example you work for a container company. If you dont want to do what they tell you, then they will starve you to death. We should be able to get work for the highest container bidder. And that should be the same along everything as an owner op
That is not what is happening with AB5, it is wiping out those of us that actually own our own equipment and putting us out of work, for the sole reason we chose to lease to a carrier or brokerage for all of the advantages it affords us. This was never about stopping these predator trucking companies with their rent a truck scams and 1099ing their drivers who have no vested interest in the equipment, or company for that matter.
Nation wide, I see sooooo many employees misclassified as a 1099 worker, and the workers don’t know it’s wrong!!
as others have said, you really have laid this out to make a lot of sense. thank you
GREAT EXPLANATION!! Much appreciated brother. 🇺🇸🇺🇸🇺🇸🇺🇸
He's always up to Snuff with his information on helping his fellow drivers out he took this complicated subject and made it simple Big Ups to this big scrapper💪
Thank you for properly explaining this to drivers. Just earned a new subscription. So much disinformation about AB5
I AM GLAD, I took the time to listen to you sr, THANK YOU! the other guy “explaining” this AB5 is clearly with the big company.
Smart Trucking...Thank You for your clarity.!
I can honestly say this is the first time someone in the industry has clarified why this has happened, thanks for the time you invest in helping to keep the trucking community informed.
I would add that there should be stipulations in AB5 that protect Real Owner Operators that Outright OWN their equipment and lease on to Brokers and Companies to manage the ridiculous costs of obtaining Authority and Insurance for Commercial Vehicle Operations.
He gives an in depth description of the good and bad. In great detail.👍👍
This is the best video explaining the whole thing. Thank you
California passed this law because they want the immediate, weekly tax revenue, NOT out of any concern for truckers.
If they also passed laws requiring a daily on the road minimum wage and overtime over 40 hours of on duty (line 3 or 4) time, THEN...maybe I'd believe CA was interested in the working conditions of drivers.
I don't drive California, but I own my own truck and am leased to a carrier that pays percentage (not mileage), 100% of both fuel surcharge and network fuel discounts (which is currently about $.65 per gallon off pump cash prices) and don't run under forced dispatch (if they offer a load that pays bad or goes to a dead end location, I politely decline it).
Ironically, my truck (900k miles) developed electric issues that are affecting several systems including the A/C and abs light (the former isn't bearable in TX summer and the latter fails DOT inspection). I'd just been drained by repairing an oil leak that ran to the tune of over $8000. With the A/C out, I decided to take a company job during the summer while rebuilding funds and looking for a mechanic who isn't afraid of finding and fixing electrical issues. I'm HATING driving as a company driver. The truck is crap (relative to mine), it's slow, it's missing basic features (these days) like a fridge (actual, not the garbage thermo electric type) and inverter, the pay is roughly a 3rd of what I made as a contractor.
That's right, a 70% paycut from contractor to employee, ouch. Most company drivers have no idea how much money the company is making off them. It's insane how companies are ripping off their company drivers and California is now forcing every contract trucker to retire or get ripped off as an employee.
Again, I enjoy working as a contractor and feel I'm fairly compensated. Working as an employee for the same carrier, I feel like I'm being screwed and treated terribly, like a piece of throwaway equipment, not a human and certainly not a driver that's been working with the organization for 13 years and has 20 years experience with a safe driving record.
I'll be happy to get my truck back on the road and get back to work as a contractor, where I get paid and treated fairly as a business partner. I'll have to trust my cooky TX politicians to not go down the same road as California. Incidentally, without a STATE INCOME TAX, Texas doesn't have the same motivation for such a law as California.
AB5 is about putting more money into California's coffers every week and not about working conditions or fair treatment of truck drivers.
If California considers a 61 hour work week, without overtime, and on call 24/7 for weeks at a time "fair" (what company employee drivers are subjected to), that tells you California politicians aren't interested in driver fair treatment or working conditions.
i recall seeing a pair of England lease-ops in 2012. they were hungry.
Thanku Dave for this thoughtful explanation video
Great insight on this subject, very educational. Thank you
Now I see it. U explained yourself very well sir. That’s what I said to others it’s really a good thing because it’s actually going to make people start thinking for themselves out the box to own their own company and also make more money.
I personally have talked to many "lease operators" over the years and most got the raw end of the deal.. this will be the FIRST law Commiefornia has passed that I agree with!!
Subscribed! I like your style buddy. Thanks for the input.
I always appreciate your wise words on these sort of things, thanks 🙏
Thanks for the videos! This bill also cuts down farm workers in the feild that are illegal that are forced to1099 at low pay
I’m from, live, & operate 🚛 in CA. AB5 will hurt us short term, but like you said Dave, it will help us, especially where I live (CA) in the long run!
For some reason I thought this whole thing was really bad for us as drivers but you clarified it for me sir. Thank you for your explanation.
Hell yeah! Thank you for explaining so clearly! You’re awesome sir!
You are the best. Thank you for explaining. My friend bought and owns his 2006 truck, it's not leased.. but he does loads under the carrier company with their dot # and their insurance. So this in fact will affect him if he wants to haul into and out of California? So the carrier will have to put him as a company driver , give him benefits and all that?
That lease owner scam is also used by certain cab companies too, this AB5 may also affect these cab companies as well as Uber & Lyft eventually.
I love it. Great video. I have always thought that these large companies were messing over these lease drivers. That they didn't really have their own company. Thanks for the content.
This is exactly what happened in my other industry. Thank u for explaining all of this!
Great video aa usual sir!! But I don't know why they need the new laws. If they enforces the current laws that are on the books there would be no need for them. What carriers were trying to do was to avoid having to pay taxes and the other things you mentioned.
Thank you for explaining Everything..After hearing your explanation I fully support this new law..Big carriers like Prime have been screwing there lease purchase drivers for years..Know several drivers who pretty much went Bankrupt..When your paying for everything on the Truck and someone is in control of your miles and the freight you haul it's a set up to fail eventually.
Thanks for the info!!!
Thanks for the explanation.
If truckers can get a good case going, mega carriers won't think that lease operators won't just roll over. Then they'll settle so they don't have to pay all the lost time/costs paid by what should've been called as employees to begin with.
I'm glad.
There's a place for O/Os where they need flexibility and carriers that want to pay staff drivers properly won't get undercut over and over.
I hope you’re right brother. I’m a trucker in SoCal, and we are very worried about what is to come.
Is all basic economic. Sadly they don't teach it in schools anymore.
Good to hear one side of the story. But, fair to hear both. Lease operators have a reason they do it the way they do it. It may pan out great in the long run.. but just saying, it would be interesting to hear why lease operators choose to lease.
Great vid, explained very well
Wonderful explanation thank you so much for explaining difficult concepts in an easy way. You are the best
I knew this would be like ripping off a bandaid , it’s going to hurt initially, but I’m the long run we hope this will be a good thing for the trucking industry. I’m tired of hearing how drivers get no benefits from the companies they work so hard for . Let’s get it California drivers !
I’m an O/O in Illinois right now and I’m starting the process of moving to a carrier that let’s me self-dispatch so I can start learning the market, get my own trailer, plates, and insurance, and if IL does bring in an AB5-type law, all I have to do is apply for my own authority. I’m expecting it to be rough, but better to prepare now than wait too long.
Another great video thank u for explanation
Now I SUPPORT that!!! Great explanation
Unbelievable California did something right for a change
How is it right?
Great video! The one thing that a few/me are confused about is if we are O/Os leased to let’s say a smaller carrier located in the midwest, are we also gonna be under this ruling?
This only applies to drivers who live in California who has a California license. If they pass this in your state then you will have a problem.
Only if you are licensed from CA
Thanks for the information 👍
Thank you for the clarification and information of what the goal is for AB5
I'm glad to see that truckers will no longer be ripped off by the big operators. There is so much misinformation out there about this.
Hey Dave thanks for the info. Now the rest of the union should follow suit.
Thank you for being clear
Got out in 2009. Looking back at almost buying from carrier i was working for. Had a bad gut feeling and didnt. Thank you for your insight and wisdom. Out of industry but still keep up with things so when iasked by young men about driving i can give an informed opinion. Just subscribed. Thanks again for your grat insights.
A lot of actual owner operators with their own authority started off as a lease operator with these bigger companies whether it be Schneider national or whoever. I know a lot of guys that least on to landstar and they're doing very very well ,this screws the individual truck driver that wants to use the leasing program to become an owner operator there's 2 sides to every story. I livie California California n don't give a s*** about the truck drivers they just want the companies to pay more taxes and they want the individual drivers to pay more taxes that's it.
10-4 Thank you for explaining and Clarifying the information.
Thanks for explaining this so clearly. Now I understand.
I can’t say this often, but nice job California. 👍