After 43 years in California, truck drivers Brian Gray and his wife, Karol, packed up their belongings and headed to Oklahoma in early December after news that the new sweeping labor law, AB5, was set to take effect on Jan. 1.
“I once made a good living in California, but it’s all gone,” Brian Gray told FreightWaves. “I am tired of being persecuted in California for being a truck driver.”
With AB5, which seeks to limit the use of independent contractors, scheduled to become law, Gray said he headed to Pottawatomie County, Oklahoma, to scout out some land and find a “business-friendly” state to house his flatbed company that hauls construction equipment.
“We bought a piece of ground in Oklahoma, but we hate to leave California,” he said. “I was always known as the ‘go-to guy’ in California and my mom and dad, brothers, nieces, everybody, still lives here, but I can’t afford to wait and see what happens in January and possibly lose everything.”
California-based owner-operators said they are being advised to move out of the state, get their own authority, which can be costly, or transition to positions as company drivers, in some cases, as the Employee and Independent Contractors law, AB5, goes into effect.
The state law determines whether a worker is an employee or contractor. It stems from the California Supreme Court’s decision against Dynamex Operations West Inc., a package and document delivery company. The court found that Dynamex misclassified its delivery drivers as independent contractors rather than employees and that all California-based companies that use independent contractors must use the “ABC test,” a three-pronged test to determine whether a worker is an employee.
Trucking companies must prove a worker is free from the control and direction of the hirer in connection with the performance of the work; the worker performs work that is outside the usual course of the hiring entity’s business; and the worker is customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity.
Just days before the Jan. 1 deadline, the California Trucking Association, which has filed legal challenges against AB5, said it is receiving “daily calls from owner-operators being told they can no longer operate in California.”
“We know AB5’s impacts are already being felt,” Chris Shimoda, vice president of government affairs for CTA, told FreightWaves on Dec. 30.
The CTA filed a motion for a temporary restraining order against the implementation of AB5 on Dec. 24, and a hearing is scheduled for Jan. 6. Shimoda said a second hearing is set for Jan. 13 on a preliminary injunction motion the organization filed in early December to block AB5.
Some California-based truckers are unsure what advice to follow ahead of the AB5 implementation, as some mega-carriers cut ties with independent California drivers in mid-November.
“Unless the court grants the temporary restraining order and, ultimately, a preliminary injunction, AB5 is the enforceable law of the land and independent truckers will continue to be driven from California,” Shimoda said.
Just one day before AB5 is set to take effect, Jeff Fink and his wife, Elyse, of Victorville, California, have narrowed their relocation search to three cities in Tennessee.
The Finks, team drivers for Long Haul Trucking of Albertville, Minnesota, said they don’t want to leave the carrier they are leased to, so they have no choice but to find a more trucker-friendly state to reside.
“We were called into the office three weeks ago and asked what we were going to do,” Jeff Fink told FreightWaves. “As of Jan. 1, I was told the company can’t dispatch me with loads leaving California if we still want to work for the company.”
Prior to the news that the state was enacting AB5, the Finks bought a 2020 Peterbilt Model 579 UltraLoft to comply with stringent California Air Resources Board (CARB) requirements.
“This new law is going to be a financial hardship for us if things don’t work out,” Fink said.”We made a large investment to comply with CARB and work in the state.”
The Finks’ mother-in-law currently lives in an assisted living facility about 110 miles from their home. Selling their place and moving to Tennessee, where they can also park their truck, was not a move they were ready to make ahead of AB5.
“My wife could drive down anytime she wanted to see her mom about 110 miles away, but that’s not going to be the case now as we are looking to move across the country to maintain our livelihood,” Fink said. “We spent the holiday weekend getting out house ready to sell.”
Once the owner of a four-truck fleet, Jimmy Nevarez, the owner of Angus Transportation Inc., based in Chino, California, is struggling to hang on to one owner-operator as the AB5 deadline looms.
“I have already lost half of my fleet, so this is devastating,” Nevarez told FreightWaves.
He said he can’t pick up and move like some other California-based truckers because of his wife and daughters, 7 and 5, who love their schools and friends.
“I can’t just uproot my family, so I am looking for alternatives to keep my business running,” he said. “If I am forced to deadhead out of California to find loads, it will turn my business on its head.”
Less than two weeks before AB5 was slated to take effect, the Western States Trucking Association (WSTA) refiled its lawsuit challenging provisions in AB5 that specifically address construction trucking companies.
“A lot of truckers are sitting back to see what happens, but they need to figure out a solution soon as there is a lot of misinformation out there,” Joe Rajkovacz, head of government affairs for WSTA, told FreightWaves.
The WSTA lawsuit focuses on the state’s Labor Code section 2750.3, subdivision (f)(8), which does not utilize the ABC test.
“Given the unpredictability of the judicial system, a judge could rule narrowly in the CTA case in a manner that does not provide adequate relief for construction trucking companies,” WSTA stated in its complaint.
For motor carriers providing construction trucking services, AB5 provides no test whatsoever; rather, it mandates that workers are employees rather than independent contractors, according to the WSTA’s complaint, filed in U.S. District Court for the Central District of California.
According to court documents, AB5 “runs afoul of federal law which prohibits states from enacting or enforcing any law or regulation related to the price, route or service of a motor carrier.”
WSTA was the first trucking organization to challenge the original Dynamex decision back in 2018.
“These are interesting times for California-based truckers,” Rajkovacz said. “The state of California is trying to superimpose its will on the federal government, so it will be interesting to see how this plays out.”
Mike Green
My family lived in California over a 100 yrs its a great state i miss the state i grew up in but now all these nuts from all over the country came to California for the good life i remember them telling me they want to save California they had ruined the state they came from and now they have ruined California you have (the nuts running the asylum )i drove truck over 40 yrs and i couldn’t take their bs anymore its pretty sad that a truck driver is held to a higher standard than a police officer who regularly kills innocent people and say they are doing their job i thought that was what the Nazis said at Nuremburg they hung them anyway as it should be i love the cops saying they would rather be juded by 12 than carried by 6 they don’t care how many they have carried by 6 that were innocent thats enough i could go on for days about the ruination of California
Joseph Owens
California is a craphole ran by wacked out Democrats like Gavin Newsom and Nancy Pelosi, both are clueless and completely out of touch with reality.
Bruce Deville
California has been shooting itself in the foot, no both feet for decades. It is a wonder that it can still qjalify for the title of “state”? When the last gainfully employed person leaves California, please turn off the lights.
David Poole
I think all truck drivers should take a two week vacation. Been driving since 82 and make less money and there is always a new law come on fellow truckers who leave your families for weeks at the time only to be spit on like we are the scum of the earth stand up be men and women let it be known without us the world stops join me let the truck parked for two weeks
Jeff
So what are they going to do about FedEx ground they’re all owner operators the knot company employees neither is p&d drivers they’re all owner operators I guess ups and FedEx Express are going to work hard and that means FedEx grounds going to have to pull out and f*** California that’s a different country down there that’s why I’ll never step a foot in that country they think they’re Washington DC and they’re not
Noble1
I’ve been reading this site for quite awhile now . What I have unfortunately realized is that there is an enormous amount of American truckers that are racist , don’t worry , they’re just as bad in Canada , so you’re not alone . They keep complaining about immigrants taking their jobs , cutting rates etc etc etc . Simply put , American truckers denigrate immigrants . I think we can agree on that . I couldn’t careless about the “reasons” , I’m pointing out a fact .
Then American truckers talk BS about shutting down because they’re unhappy with the way they’re treated(denigrated) in the industry . Though you are doing the same thing by putting trucking immigrants all in the same basket . Like I said , I couldn’t careless about your reasons. It’s quite ironic that you would complain about ill treatment and then turn around and treat those who are different than you are , unethically .
And you make yourselves believe that a “shutdown” would solve your “problems” ???
First of all , we know how you feel about immigrants , therefore there is a slim chance that they would join you due to how you feel about them . While you would be attempting to create hardship through your so called “shutdown” , they would be filling the demand thanks to YOU .
You might like to check out :
Quote :
1994
“Teamsters Strike Shuts Down 22 Trucking Firms”
They were 75,000 truckers on strike .
Quote:
“In fact, the majority of the nation’s trucking companies, which are not covered by the Teamster contract, and independent truckers remained open Wednesday and reported a stream of new customers seeking available space.
“We are getting a tremendous influx of additional freight volume,” said Jeff Jordan, a spokesman for Overnite Transportation, a large non-union trucking company with headquarters in Richmond, Va.”
“The first day of the strike found many companies shifting to other carriers to avoid disruptions.”
“Wal-Mart, the nation’s largest retailer, was also prepared for the strike.
“The company had selected alternative carriers as backups for the small percentage of our carriers who are Teamsters,” said Jane Arend, a Wal-Mart spokeswoman.”
End quote .
Now fast forward to today . Your so called shutdown would render you jobless unless you’re part of a an organized labour union and didn’t breaks laws . Some Americans have great runs and are ok with what they are earning . Some are eager to expand . It’s not like there was a shortage of cheap labour .
Therefore I dare you . In fact I challenge you to attempt your so called shutdown . Truckers can hardly get along among themselves . Without an organized labour union you’re powerless, and even then . There is no more camaraderie among truckers as there once was back in the 1970’s . Back then all it took was a common major issue and one little peep on a CB . And what did they really accomplish ? The 1980 motor carrier act that has lead to where the industry is now . Times have changed and so has the truck driver culture . Truckers are on their way to being replaced with cheaper labour and then technology . That’s your fait in this industry .
Back in the day when some truckers were unionized with hire wages , it was due to major carriers, organized labour unions , and the federal government all colluding with one another . Then the rural WHITE AMERICAN truckers fought back because they wouldn’t have any part in that sort of BS of being “controlled” by a union through “regulations” . They wanted to remain independent and pushed for freedom through deregulation . That deregulation in 1980 has lead us to where we are today with excessive cut throat completion and abuse which lead to more regulations and mediocre rates and wages !
Now you want to go backwards and shutdown in an attempt to have the industry regulated at your convenience ?
THEN JOIN A FREAKING ORGANIZED LABOUR UNION ! Why ? Cause you’re not clever enough to do otherwise ! You’ve been there , and you’ve done that . SO FOLLOW cause you sure as heck can’t lead !
I’ve analyzed the general trucker mentality . You’re “generally” all the same . That’s the problem in this industry ! YOUR MENTALITIES ! You want to fight and push the liberty of another out of your way . That’s not how it works man !
Personally , I couldn’t careless where you come from , nor the color of your skin . What I care about is conducting oneself ethically , especially among your comrades . Have a little compassion through understanding one another . Befriend one another !
There was a group by the acronym of BMS that tried to entice truckers to join them in a shutdown . Leaders were advocating hate , and giving the middle finger to the population ! What kind of retarded mentality was that ? Where is that group now ? They failed ! They lacked respect ! They lacked ethics ! At one time they had 25,000 members in their social media group ! 25,000 ! Not once did they suggest to do things in an innovative way that would render truck drivers prosperous ETHICALLY ! It was all about fighting , racism , causing hardship , feeding their egos out of proportion about running the country with BS kindergarten grade manipulation tactics ??? Even then , I felt pity for them . I knew they were , and still are suffering . Then some would show videos of themselves giving food to the homeless and say : “You see we are good people ” , ???
The issue that you’re so desperately trying to fight is a “mentality”, and yours is no better . I never joined a group , never . Why ? Due to their “leaders” . I’m extremely picky , I settle for nothing less than the very best . If you think that you’re going to CONvince me , I’ll analyze you . Sometimes it may take a split second . Sometimes a day or two . If I find that you’re a manipulative character , then I’ll attempt to reason with you . Once you confirm that you’re closed minded and unreasonable , adios buddy ! I’ve dealt with all kinds ! I’ll generally read you before you even have a chance to open your mouth . Seldomly am I wrong . I’ll give the benefit of the doubt sometimes due to not being perfect . That means in an interview I’ll question in a way that will either confirm or refute my hypothesis on the interviewers character . Most interviews don’t last more than 5 minutes ,I’m out the door and on to the next . When an agreement is achieved , I’ll test . After a few days OTR , you’ll know what to expect when I get back . You want to be profitable , no problem . Not at my expense though .
I’ve walked in your shoes . I know what you’re going through , but I’ll be damned before I “follow” some primitive way of thinking . I pick the runs I want and calculate them to perfection . I include the out of my control potential scenarios . Give me a tool I can depend on , then step back and let me be profitable for you . That’s not too much to ask is it ? Apparently so . Soon I’ll be trying out another soon . If all works well this will be my last year in this BS .
I’ll multiply my earnings in the markets no matter which direction they go . then freedom . True freaking freedom !
Then I’ll act like a typical consumer , meaning , I couldn’t careless who hauls the stuff I need , just haul it , and thank you .
Oh and , Happy New Year ! You see I don’t even follow traditions . The New year for me is at the spring(vernal) equinox(In the Northern Hemisphere)due to life emerging on this planet according to this planet’s clock . I don’t need some clown to manipulate me into believing when a true natural “new year” begins .
Best of luck !
In my humble opinion ……….
P.S , I’ll be looking forward to reading about your attempt to shutdown , LOL !
Noble1
Quote:
“There was a group by the acronym of BMS ”
Oops , BSM ! Not BMS , LOL ! Anyways who cares , you’re a lost cause anyways
In my humble opinion ………
Bmburds
Lol, you proved bu saying “geraly you all are the same”,you are excattly what you complained about over this whole self rightous tirad, please drop the title noble1 unless you are truley a noble of a house, you start out making good points, than slowly decend to a im am smarter and better than you attitude.
Noble1
Funny you haven’t figured out the problem in the industry yet .
Here’s a hint !
Look in the mirror !
Steve
I am not against the people coming but the way trucking companies use them to depress wages and not provide for injured or sickness caused by the job. My case in point my house was damaged and condemned after a large wind storm 7 years ago. Then 5 years ago I was hit from behind by a Ryder truck at 60 M P H in both no fixing the truck or the. I have treatment worse than I got by truck drivers new to Canada. Right now their lot’s of truck driver jobs if you have good health but because health problems and being homeless it impossible to make a living this year.
Noble1
I generalized on purpose . I want these discriminating ignoramuses to feel how it feels to be discriminated against . You would think they understood by now with the ELD mandate .
There’s no point in trying to reason with them . The truck driver culture changed . Most don’t care about anyone but themselves . Then “they” complain about being under appreciated .
Business tends to be ruthless . A “strike” is not the solution . If it were , the general business mentality would have changed by now. 2 wrongs don’t make a right . Striking is equivalent to a constant fight that never ends .
As much as we dislike regulations , that’s what the industry needs to be , regulated . We’ve seen nothing yet . The industry is going through a revolution . It’s coming back full swing to being regulated .
In regards to unethical business/political conduct , if our mentalities changed and we united we then could cause some serious fair sustainable change .
However, I changed my perspective . During my last year in this business I’ll try to concentrate more on foreigners and give them a few suggestions to unite for a common cause .They need to become tighter . If they unite , they could literally take over this industry . They sure as heck are being used by the big boys to disrupt it . Then some turned around became OO’s & carriers and stuck it to those big carriers by competing with them .
Now the big carriers are crying due to the loopholes some foreigners are taking advantage of to compete against them . They’ll need a few tips to be even more profitable once that loophole tightens . I’ve already been speaking to a few in regards to diminishing their fuel costs .
You should see their faces when I chant their Hare Krishna mantra to them , especially due to being chanted by a white person , LOL !
By the way , I haven’t seen many of them shutting down due to increased “costs” . I’m referring to those that pay their drivers on payroll . How come some of them can pay drivers a higher wage on payroll ,succeed , and remain profitable ??? It comes down to being business savvy .
In my humble opinion …………
Forrest P Whitney
I agree time.for.another strike…thats ehy i dont go to California..pretty sad was norn and raised there before it became Commifornia..California needs to wake up and kick the commie scum out. But it wont happen everyone is walking around in a THC affected state..got out in time and moved to Texas..god bless the lone star state.
Derek Barrett
Well….don’t haul into the state or out of it…let the people who need all the supples complain….let their fruit spoil and let them know how important trucking is…after all..the only thing not delivered by a truck is babies..v
Juan robledo
One reason that we didn’t plant roots in California , wow what a mess but then again California has enough idiot’s living there and making big decisions that affect people’s lives that the last thing people need is more idiotic laws passed
rebecca ann
they keep coming up with all these stupid laws and getting away with it because no one ever does anything about it
Noble1
Careful what you wish for .
Most of you truck drivers are advocating for government to step in and rectify truck driver abuse . Misclassification is abusive .
This particular law was created due to abused truck drivers fighting back to stop the abuse .
It’s a bit extreme , however, it’s in response to the extreme abuse truck drivers have endured .
You can’t have your cake and eat it too !
Often times laws(regulations) lack equilibrium . Look at the ELD mandate as an example .
In my humble opinion …………
austin
it’s about time all people that live California march to the capital and take the state back from these parasites.
Stephen Webster
You are so wrong the California model allows 2 check each pay period one for the truck and for the truck drivers. The cost to nonprofit groups and the taxpayers of sick and injured truck drivers is too high in Canada a truck driver was arrested on Saturday for having no money for a cab from the hospital. The same truck driver was dumped out a cab in downtown Windsor At 345 in the morning on Friday ( he is now very sick and almost died Sunday)with only a thin pair of coveralls on only able to crawl as both feet got damaged. The taxpayers in Newark n j and New York City are looking at doing the same or more restrictive than California.
Ralph
I’m packing up my 4 trucks and moving across the border like 190 miles away from snow flake So cal there a fug JOKE. And money I pay in Tax fug Idiot’s!