California Assembly goes after Lyft and Uber with AB-5, but the trucking industry will take the biggest blow

According to CCJ, “The legislation would, in effect, bar companies from hiring independent contractors to perform tasks that are part of the business’ core function. For trucking, this means motor carriers would be blocked from leasing with owner-operators as independent contractors — a prevalent model within the industry.”

Read the full article at ccjdigital.com

Our Observations

“The captive can be a competitive advantage to transfer the cost of making owner operators employees and obtain premium savings through the captive model.”

– DeAnna Buck, Captive Power Broker

“The method by which the state will enforce this is yet to be determined. All you can do is create separation from independent businesses contractually and through proper processes. This takes collaboration with your lawyer and your insurance consultant.”

– Maron Impagliazzo, Transportation Power Broker