2/3rds of truckers in california are owner operators, which is good.
The bad, Lease Operators are being abused, its basically the company store, not enough money to pay the bills. Basically micro-management, buy gas from the company, company repairs, not allowed to run their own loads. The companies started making their main revenue off lease operators.
So the trucking companies put lots of political money to get AB5 passed (while Uber was excluded), its a profit model for them.
Instead of making rules for lease operators to not be abused by Trucking companies, the state included all owner operators.
The end, Trucking companies just excluded CA based owner operators, and are hiring out of state LLC (Most likely South Dakota), end run around the law, and keeps their lease money. Simple, bypass the law.
So truckers can
1. Become an employee
2. Become an owner operator and do your own freight
3. Owner Operators will move their LLC out of state and keep working.
Also AB5 isn't just for Truckers, its for all gig workers.
The bad, Lease Operators are being abused, its basically the company store, not enough money to pay the bills. Basically micro-management, buy gas from the company, company repairs, not allowed to run their own loads. The companies started making their main revenue off lease operators.
So the trucking companies put lots of political money to get AB5 passed (while Uber was excluded), its a profit model for them.
Instead of making rules for lease operators to not be abused by Trucking companies, the state included all owner operators.
The end, Trucking companies just excluded CA based owner operators, and are hiring out of state LLC (Most likely South Dakota), end run around the law, and keeps their lease money. Simple, bypass the law.
So truckers can
1. Become an employee
2. Become an owner operator and do your own freight
3. Owner Operators will move their LLC out of state and keep working.
Also AB5 isn't just for Truckers, its for all gig workers.