{"id":1546665,"date":"2022-07-10T08:06:55","date_gmt":"2022-07-10T12:06:55","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1546665"},"modified":"2022-07-10T08:07:08","modified_gmt":"2022-07-10T12:07:08","slug":"70000-self-employed-truckers-in-california-face-shutdown-under-new-state-law","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/70000-self-employed-truckers-in-california-face-shutdown-under-new-state-law\/","title":{"rendered":"70,000 Self-Employed Truckers in California Face Shutdown Under New State Law"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2F70000-self-employed-truckers-in-california-face-shutdown-under-new-state-law%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1546665&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Tens of thousands of independent <a href=\"https:\/\/www.theepochtimes.com\/t-california\">California<\/a> truck owner-operators could be out of business soon under a new statewide worker classification law designating them as employees.<\/p>\n<p>On June 30, the U.S. Supreme Court denied a review on whether California Assembly Bill 5 (AB-5) violates the Federal Aviation Administration Authorization Act of 1994 as it applies to self-employed truck drivers.<\/p>\n<p>\u201cGasoline has been poured on the fire that is our ongoing supply chain crisis,\u201d the California Trucking Association (CTA) wrote in a June 30 response to the high court\u2019s decision regarding the association\u2019s legal challenge to the bill.<\/p>\n<p>\u201cIn addition to the direct impact on California\u2019s 70,000 owner-operators\u2014who have seven days to cease long-standing independent businesses\u2014the impact of taking tens of thousands of truck drivers off the road will have devastating repercussions on an already fragile supply chain, increasing costs and worsening runaway inflation,\u201d the association added.<\/p>\n<figure id=\"attachment_4524941\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/06\/10\/GettyImages-1398375497-1200x841-1200x841.jpg\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-4524941\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/06\/10\/GettyImages-1398375497-1200x841-600x421.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"421\" \/><\/noscript><\/figcaption><\/a> A truck drives by stacks of shipping containers at the Port of Oakland in California on May 20, 2022. (Justin Sullivan\/Getty Images)<\/figure>\n<p>\u201cWe are disappointed the court does not recognize the irrevocable damage eliminating independent truckers will have on interstate commerce and communities across the state.<\/p>\n<p>\u201cThe legislature and [Gavin] Newsom administration must immediately take action to avoid worsening the supply chain crisis and inflation.\u201d<\/p>\n<p>The California State Assembly adopted AB-5 in September 2019, sparking CTA\u2019s legal challenge and the Supreme Court\u2019s latest decision.<\/p>\n<p>The bill\u2019s primary sponsor was Lorena Gonzalez (D), a union leader and former Assembly member.<\/p>\n<p>Under AB-5, a self-employed commercial truck owner must satisfy a three-part test to be considered an independent contractor, with exceptions for construction trucking services.<\/p>\n<p>The bill adds that existing law \u201ccreates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission.\u201d<\/p>\n<p>Existing law defines employees for purposes that include \u201cany individual who, under the usual common law rules applicable in determining the employer-employee relationship, has the status of an employee.\u201d<\/p>\n<h2>Self-Employed Truckers Entitled to Benefits<\/h2>\n<p>The bill would entitle those self-employed truck drivers and owners to the same benefits and workers\u2019 compensation as regular employees.<\/p>\n<p>According to Globecom Freight Systems, a leading provider of transportation services, owner-operators make up 9 percent (350,000) of the commercial truckers on the road today. Their average salary is about $50,000.<\/p>\n<p>A recent study by the American Trucking Association found that the nationwide shortage of 80,000 truck drivers could double by 2030.\u00a0In light of the shortage, many trucking companies now offer lucrative sign-on bonuses and salaries to attract more drivers.<\/p>\n<p>The Federal Motor Carrier Safety Administration recently launched an apprenticeship driver program for those aged 18\u2013to\u201320 that would allow them to cross state lines to help further alleviate the shortage.<\/p>\n<p>Tony Bradley, president and CEO of the Arizona Trucking Association, criticized AB-5 as a \u201chorribly misguided piece of legislation\u201d by California labor unions that will have a \u201cdrastic impact across all trucking.\u201d<\/p>\n<figure id=\"attachment_2275744\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2017\/08\/01\/GettyImages-682355586-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy size-medium wp-image-2275744\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/GettyImages-682355586-1-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\" \/><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-2275744\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/07\/GettyImages-682355586-1-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Freight trucks pass through Mexican Customs before entering the United States at the Otay Mesa port of entry in 2017 in San Diego, California. (John Moore\/Getty Images)<\/figure>\n<p>\u201cIt\u2019s unclear at this point how it will affect owner-operators that don\u2019t live in the state of California,\u201d Bradley told The Epoch Times.<\/p>\n<p>\u201cWe are evaluating and looking at it closely, but putting 70,000 people out of work is not the thing to do when we have raging inflation and supply chain issues.\u201d<\/p>\n<p>\u201cHow are people supposed to follow their dream of starting their own trucking company if they can\u2019t be their own boss? In California, they\u2019ve effectively stopped that practice,\u201d Bradley said.<\/p>\n<p>Bradley said that today, 97 percent of all trucking company fleets include 10 trucks or fewer, and every large company began with \u201cone truck.\u201d<\/p>\n<p>He said AB-5 will force independent truck owner-operators to join an established trucking company or \u201cfollow some other career path.\u201d<\/p>\n<p>\u201cThis was largely run by the California labor unions, who find it difficult to unionize people who work for themselves. I think it will have a huge impact on our industry and economy,\u201d Bradley said.<\/p>\n<p>Given Arizona\u2019s proximity to California, the world\u2019s third-largest economy, Bradley said it\u2019s challenging for Arizona independent truck owner-operators not to do business in California.<\/p>\n<p>\u201cI think some of them will exit the business and pursue other dreams [though] we don\u2019t know what the repercussions will be for out-of-state drivers,\u201d Bradley said.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-allan-stein\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/06\/Allan-Stein.jpeg\" alt=\"Allan Stein\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Allan Stein is an Epoch Times reporter who covers the state of Arizona.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tens of thousands of independent California truck owner-operators could be out of business soon under a new statewide worker classification law designating them as employees.On June 30, the U.S. Supreme<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1546665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1546665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1546665"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1546665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1546665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1546665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1546665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}