Following extensive legal battles, California’s AB 5 law will now enforce stricter classification of truck drivers, potentially ending the use of independent contractors in trucking. Meanwhile, the Department of Labor has revised its criteria for determining employment status, complicating the classification process for independent contractors across various industries. PRIMO’s robust vetting process and comprehensive freight management system alleviate uncertainties businesses face due to evolving contractor regulations, ensuring compliance and operational efficiency in a shifting regulatory landscape.

• Federal Court Decision: A federal district court has allowed California to enforce its independent contractor law, AB 5, which impacts trucking companies’ use of independent contractors.
• Legal Challenges: The law faced numerous legal challenges, including an appeal to the U.S. Supreme Court, which declined to hear the case.
• Industry Impact: The California Trucking Association and other groups are exploring ways to comply with or work around the law, such as reclassifying drivers or changing business models.
• DOL and NLRB Rules: Other related legal battles involve the Department of Labor’s new contractor rule and the National Labor Relations Board’s joint employer rule, both of which are also facing court challenges.

Reference: mhlnews.com