Posted on 07/02/2022 11:37:45 AM PDT by EBH
The Supreme Court yesterday denied an appeal from the California Trucking Association about AB5, the new employment law in California governing independent-contract work. That means the law goes into effect today, and the trucking industry in the most important state for supply chains will face major upheaval.
“It is going to be a radically new world in California’s trucking sector with the imposition of AB5, and it isn’t clear what parts of the industry — if any — are ready for it,” writes John Kingston at FreightWaves. The law was enjoined by a lower court on New Year’s Eve in 2019, preventing it from going into effect for the trucking industry. In April 2021, the Ninth Circuit Court of Appeals, in a 2–1 decision, overturned the injunction, allowing the law to apply to trucking, but it was still not in effect while the CTA appealed the decision to the Supreme Court. Now that the Supreme Court has denied the appeal, the law goes into effect today.
AB5 seeks to classify more independent contractors as employees under state labor laws. Most truck drivers are independent owner-operators who contract with trucking companies to make deliveries.
But AB5 makes it much harder for that arrangement to work. It imposes an “ABC test” to determine whether someone is an independent contractor. The “B” portion of that test, which says that an independent contractor must be someone who “performs work that is outside the usual course of the hiring entity’s business,” is the largest problem for truck drivers. Making deliveries is part of the usual course of a trucking company’s business, so it would be difficult to classify independent owner-operators as independent contractors.
(Excerpt) Read more at nationalreview.com ...
All so they can force them into unions and skim their union dues for Democrat political contributions.
California don’t need no stupid truckers they have millions of Illegals they can load up with goods
Form a SMLLC (Single member LLC), declare yourself an employee and pay yourself with all the proper withholding, doing your quarterly 941 and issue a W-2 at year end. File a determination with the IRS as an S-corp or elect to go the Schedule-C route. I do not know how that squares with the Cali law, but that is what I recommend to my Florida clients. As long as you take reasonable pay from your S-Corp (generally 40 to 50 percent). you should have no Federal trouble and get several tax advantages, depending on the 1120-S / Schedule C choice. Consult your tax advisor.
"The Supreme Court yesterday denied an appeal from the California Trucking Association about AB5,
the new employment law in California governing independent-contract work.
That means the law goes into effect today, and the trucking industry in the most important state for supply chains will face major upheaval.
In April 2021, the Ninth Circuit Court of Appeals, in a 2–1 decision, overturned the injunction, allowing the law to apply to trucking,
but it was still not in effect while the CTA appealed the decision to the Supreme Court.
Now that the Supreme Court has denied the appeal, the law goes into effect today.
But AB5 makes it much harder for that arrangement to work. It imposes an “ABC test” to determine whether someone is an independent contractor.
The “B” portion of that test, which says that an independent contractor must be someone who “performs work that is outside the usual course of the hiring entity’s business,” is the largest problem for truck drivers.
Making deliveries is part of the usual course of a trucking company’s business, so it would be difficult to classify independent owner-operators as independent contractors. "
Yeap. That is what I was thinking. They have to learn to jump through the hoops. Government is a pain in the butt.
So the State of California wants to take down the country.
The Supreme Court is not going to interfere because how employment happens is a state decision
Even if there is an interstate commerce issue.
Smart folks will bring items in through other state ports.
Gettin’ to be about time to “Park ‘Em,” and let the bosses of California enjoy the fruits of their handiwork.
Shouls take about a month.
Which is exactly what will happen...there are plenty of ports that are not on the West Coast. I am sure they will welcome the ships and the trucks with open arms... All this does in the long run is hurt California (and assuming OR and WA follow CA's lead as they usually do).
California politicians are evil. Thank the lord escaped from behind the Pink Curtain a year ago. I kiss the Tennessee ground every day in gratitude for my newfound liberty.
Will the last conservative to leave the People’s Republic of California please turn out the lights. They need the energy savings.
Basically, no OO’s can operate inside California, as far as I can tell. Unless companies like Schneider, SWIFT, etc. can take up the slack, we’re in even bigger trouble.
I know DeSantis offered his Florida ports for all that backed up shipping, but it’s hard to tell how feasible that is for shippers. Are Florida’s ports deep enough for those super container carriers? Does it cost too much in fuel to take that long trip through the Canal and the Gulf?
Just don’t deliver to SacraMENTAL, Frisco and LA.
My truck never crosses the southern border of Oregon - and never will. Washington won’t follow suit because much of that container traffic will be diverted up here, and they need O/Os to haul the various harvests.
Inslee is an idiot, but we still have a lot of Republicans in our state house.
California is screwing the Asians here. As well as the rest of the US
Redirect them to New Orleans. 🙂
George W. Bush's grand plan may finally come to pass.
Ho managed to beat us in a war using little guys in sandals pushing bicycles.
Exactly. Lorena Gonzales cooked this up as a direct sop to her Union pals. The main target was Uber and Lyft, but she wasn’t unhappy to kill off independent owner-operator truckers in Cali either.
Kalipornia thinks they should all go to Phoenix😁😣
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