Biden’s DOL chief pick faces opposition from 150k truckers in OOIDA
President Joe Biden has nominated Julie Su for the Department of Labor Secretary, but she is facing massive push-back from the Owner-Operator Independent Drivers Association (OOIDA), a group representing 150,000 truckers. The OOIDA is asking the Senate to block the nomination on the basis of Su’s previous role of California’s labor secretary, where she backed the controversial 2019 contract-worker law known commonly as AB5.
AB5, which went into effect on January 1, 2020, aims to classify more workers as employees rather than independent contractors. The law uses a three-part test to determine whether a worker is an employee or an independent contractor. The test requires that a worker be free from control and direction of the hiring entity, perform work outside of the usual course of the hiring entity's business, and be customarily engaged in an independently established trade, occupation, or business. However, the OOIDA argues that AB5 hurts independent owner-operators because it restricts their ability to work as independent contractors. Many owner-operators prefer to work as independent contractors because it allows them to have more control over their schedules, routes, and earnings. AB5 makes it more difficult for them to work as independent contractors by creating a stricter standard for classification.
Additionally, the OOIDA argues that AB5 could have negative consequences for the trucking industry as a whole. They argue that it could lead to a shortage of available drivers and an increase in shipping costs for businesses and consumers. The OOIDA supports legislation that would exempt owner-operators from AB5 and allow them to continue working as independent contractors.
In a significant ruling, a federal judge in California rejected a challenge against the state's independent contractor law, AB5, from the trucking industry.