What is California’s AB5 Law and What Does It Mean For Independent Truckers?

The Assembly Bill 5 Law, shortened as AB5 Law, was signed into law by Governor Gavin Newson and took effect in September 2019. The law restricts employers’ ability to classify workers as contractors instead of employees, especially independent truckers.

This California legislation was championed by labor unions and replaced the standard model of classifying workers. The AB5 Law presents a new three-point ABC test that presumes a worker is employed unless specific criteria are met.

The ABC test criteria entail that the worker:

1. Is not in the control and direction of the hiring company when executing their work
2. Is performing duties or tasks outside the usual course of hiring company’s business
3. Is customarily engaged in established trade, business, or occupation of the exact nature as the duty or task performed

According to the Assembly Bil 5 Law, the shipping or transport company must show or prove that the hired contractor’s role was outside of its normal business operations and function. This leaves an open avenue for independent truckers to claim to be employees of the hiring company and sue for benefits and wages.

Generally, the bill was introduced to safeguard gig workers from misclassification and give them the same rights and benefits the company’s regular employees enjoy. While many other states have the ABC test, they only deny independent trucker contractor status, where workers work regularly in the exact location.

California’s AB5 Law has been a subject of heated debate with a series of court cases. However, a Federal injunction exempting transport and shipping companies from th