Some truck drivers in California who move containers in and out of the marine terminals at the ports of Los Angeles and Long Beach say they plan to participate in a work stoppage this week to protest a state law, Assembly Bill 5 (AB5), that seeks to limit the use of independent contractors and instead classify them as employee drivers.
In simplest terms, the AB5 law stems from a California Supreme Court decision that California-based companies using independent contractors must adhere to an “ABC” test to determine whether a worker is an employee. A component of this test defines an independent contractor as a worker who is engaged in “work that is outside the usual course of the hiring entity’s business,” which is causing problems for motor carriers using independent owner-operators to haul freight.
Many of the drivers involved in the protest say they don’t want to become employee drivers, preferring to remain classified as independent contractors.
On top of this, multiple trucking companies hauling containers in and out of the Port of Oakland have announced plans for a similar work stoppage next Monday.
This is a developing story, and while it’s unclear how many owner-operators plan to participate in the work stoppage, there is the possibility of impact on the movement of mobile employees’ household goods.
Please reach out to your Weichert contact if you have any questions.
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