Truck Drivers Challenge California’s New Gig-Economy Law, Assembly Bill 5

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10. Truck Drivers Challenge California’s New Gig-Economy Law, Assembly Bill 5.jpg

In November 2019, the California Trucking Association filed a federal lawsuit to challenge the new California state law attempting to force gig-economy companies to treat their drivers and workers as employees. In doing so, the workers would be entitled to benefits and protections under labor law like overtime pay and sick leave.

California’s new law was based on the 2018 California Supreme Court ruling setting higher standards for when a company can classify a worker as an independent contractor. Assembly Bill 5 is scheduled to go into effect in 2020. (Governor Gavin Newsom signed it in September 2019).

The California Trucking Association argues that the law will deny a lot of truckers the opportunity to work as independent drivers in the state of California. By driving as independent contractors, truckers are able to profit from their own vehicles and set their own schedules. The new bill threatens cover 70,000 truckers’ livelihoods and according to the California Trucking Association, also violates federal law.

Truckers working as independent contractors are frequently experienced drivers who have already worked as employees and actively chose to strike out on their own instead. The California Trucking Association feels they should not be deprived of this lifestyle and career choice. A spokesman for the association explained their stance by indicating that the law can protect workers from misclassification without taking away the rights of independent truckers to actively seek a living on the road in California outside of the traditional employment model.

Supporters of Assembly Bill 5 insist that the law only strengthens the rights of workers and makes sure that employers do not deny their workers benefits they have earned (like minimum wage, paid family leave, and overtime). Some professional classifications receive broad exemptions from the new rules under the law (i.e. lawyers, real estate agents, etc.) But truckers were not offered similar treatment, although the lawmakers did offer delayed implementation to some offering construction related services.

The complaint was filed in the U.S. Southern District Court. The complaint challenges both Assembly Bill 5 and the underlying California Supreme Court ruling commonly referred to as Dynamex.

If you need to discuss Assembly Bill 5 or if you are misclassified as an independent contractor, please don’t hesitate. Get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in any one of various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.