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Carriers are bracing for the potential ramifications of AB5, warning that the California labor law will significantly disrupt the state's trucking industry.
Our latest Flashback Friday featured stories highlighting carriers’ preparations for the law, which requires the state’s estimated 70,000 owner-operators to be reclassified as employees instead of independent contractors.
Some companies have been preparing for implementation of the law since it was passed in 2019, before a legal challenge by the state trucking industry tied up the law in the courts. After the Supreme Court declined to hear the case earlier this summer, others are scrambling to eliminate owner-operators from their California operations to ensure compliance.
