Controversial law affecting truckers brings in fines up to $25,000 – and will prevent some drivers from g... - The US Sun
An EMPLOYMENT law that could limit where some drivers can work has come into effect in California after surviving a Supreme Court appeal.
The law has been debated for years, but just kicked in last summer after a lengthy court battle.
Although Assembly Bill 5 (AB5) – an employment law aiming to protect employees from being misclassified as gig workers and losing out on earned benefits – is aimed at all independent contractors, the driving industry could be particularly affected.
Tens of thousands of drivers receive work on a freelance basis, allowing them to move between companies and have a great deal of control over their income and schedule.
However, being classified as independent puts drivers and other workers at a disadvantage when it comes to earning benefits from the employer in the case of unemployment, illness, or similar issues.
Now that the law is being applied across the state, trucking companies who misclassify their drivers as freelancers can face civil fines between $5,000 to $25,000 in addition to other legal penalties.
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AB5's proponents celebrated a hard-won legislative victory for workers' rights when the law passed in 2018, but critics said that the new rule would restrict who is hired and make work opportunities more scarce.
Experts are afraid that the...
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