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The California Supreme Court recently issued two decisions that shed light on the question of whether AB 5 would be imposed on owner-operator truck drivers who spend a majority of their time outside of California.[1] These decisions may influence the pending legal challenge to the application of AB 5 to the trucking industry. The […]
An already challenging economic environment for truckers may worsen with a proposal in Congress to increase minimum public liability insurance limits to $2 million. In mid-June, Representative Jesús “Chuy” García (D-IL-04) introduced a proposal in Congress that require commercial motor vehicles to be insured against liability at a level of $2 million—266% higher than […]
Last week the California Air Resource Board (“CARB”) adopted what it has heralded as a “first-in-the-world” rule requiring truck manufacturers to transition from diesel to electric zero-emission trucks starting in 2024. CARB anticipates that by 2030, nearly one in three new tractor-trailers in California will have zero emissions. This is likely the first of […]
One of the biggest challenges to assessing AB 5’s impact on the owner-operator model has been ambiguity about how it will be enforced by California. Particularly at issue is Part B of the ABC test codified by AB 5. An employer who wishes to treat their workers as independent contracts must be able to […]