Motor carriers look to navigate an industry with less owner-operators
🚛 With the traditional owner-operator business model threatened, the trucking industry is looking to get creative moving forward.
California’s Assembly Bill 5 has passed, restricting businesses from classifying workers as “independent contractors if those workers are in the same business. Plenty of motor carriers are exploring their options, some suggesting owner-operators relocate from California or gain their own authority to operate. The regulatory, safety and insurance obligations required to operate as a motor carrier are extensive, and many owner-operators are reluctant to pivot in that direction.
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In a significant ruling, a federal judge in California rejected a challenge against the state's independent contractor law, AB5, from the trucking industry.