Enter the New California Trucking Number /AWB number/air waybill number/docket no / reference number/PRO No / B.O.L. No in the automatic tracker box to check the real-time delivery status of your worldwide parcel, orders, COD consignments, container, freight, transport, transportation, shipping, vans, trucks, express cargo and shipments online. You can also check and trace the current status of courier location and delivery date or any delay info by calling the customer service center.
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As of January 1st, 2021, the state of California implemented a new law that impacts the trucking industry. The law is known as Assembly Bill 5 (AB 5), and it aims to reclassify independent contractors as employees, including truck drivers. This change is significant for the trucking industry, as it has the potential to alter the business model for many trucking companies operating in California. In this article, we will explore the impact of AB 5 on California trucking.
What is Assembly Bill 5 (AB 5)?
AB 5 is a law that was signed into effect on September 18th, 2019, and went into effect on January 1st, 2021. It aims to address the issue of misclassification of independent contractors in California. The bill sets up a three-part test, known as the ABC test, to determine if a worker should be classified as an employee or an independent contractor. To pass the test, the worker must:
A. Be free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact. B. Perform work that is outside the usual course of the hiring entity’s business. C. Be customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.
The Impact of AB 5 on California Trucking
AB 5 has a significant impact on the trucking industry in California. Prior to the law, many trucking companies in the state classified their drivers as independent contractors, which allowed them to avoid paying for benefits such as health insurance, workers’ compensation, and overtime pay. However, under AB 5, many of these drivers will now be reclassified as employees, which means trucking companies will have to provide these benefits.
The new law also puts pressure on trucking companies to rethink their business model. Many companies will have to adjust their rates to cover the costs of employing drivers, which could lead to higher costs for shippers and consumers. Additionally, some trucking companies may have to downsize or close altogether, as they cannot afford to pay for employee benefits.
Furthermore, the implementation of AB 5 has led to legal challenges in the trucking industry. The California Trucking Association filed a lawsuit against the state of California, arguing that the law violates federal law and harms independent owner-operators. The case is still ongoing, and it remains to be seen how it will impact the trucking industry.
Conclusion
AB 5 has brought significant changes to the trucking industry in California. The law aims to protect workers from being misclassified as independent contractors and not receiving the benefits they are entitled to. However, the implementation of the law has also put pressure on trucking companies to rethink their business model, and it remains to be seen how the industry will adapt to these changes. As the legal challenges to AB 5 continue, it is clear that the impact of this law will be felt in the trucking industry for years to come.
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