Truckers, Insurance Industry, Frustrated Over New California Employment Law

A new employment law in California has trucking companies, independent trucking contractors, and insurance companies, scrambling to comply at a time of great stress in the industry.

The law makes it harder for trucking companies to classify drivers that work for them as independent contractors. It would also make trucking companies treat independent drivers like employees with full-time work benefits.

According to The Wall Street Journal, thousands of truckers who own or lease their own vehicles and work as contractors will be able to take advantage of employers’ permits and insurance discounts.

The California law, known as AB5, was enacted on January 1, 2020.

Uber, Lyft, the American Transportation Association, and other associations, filed a suit over AB5, which went all the way to Supreme Court. But justices refused to hear the case in June 2022, so the law came into effect.