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Construction Trucking

CaliforniaLicenses

My client is a sub-contractor involved in a multi year construction project(s). They meet all the standards of construction trucking except, they as a sub-contractor do use independent contractors for these jobs. Is this okay under the construction trucking exemption or does the sub-contractor have to hire all drivers as employees? These contracts started before AB5 and will continue for several years and the expense of employees only was not factored in. What purpose would this construction trucking allowance serve if not to allow owner operators/independent contractors. The wording appears to give the exception, then take it away again by saying all work by the sub-contractor must be performed by employees.

1 reply

Dec 13, 2019
As you mention above, trucking companies are exempt from certain provisions of AB 5 if specific criteria are met. And, one of the criteria for the trucking exemption is that a subcontractor uses its own employees to perform trucking services. The implications of AB 5 are far-reaching, and because there are ongoing challenges and legal battles regarding the legislation, it's hard to draw any firm conclusions. So, it will definitely be important to keep track of the litigation to see if AB 5 is undercut or if its implementation is postponed. Unfortunately, at the moment, there's no clear consensus on how trucking companies using independent contractors can comply with AB 5. Essentially, the entire California trucking industry, and the construction industry at-large, is in wait-and-see mode to determine if and how AB 5 will actually be enforced. Still, the following articles have some helpful discussion on the subject: (1) Perspective: What AB 5 Means for California Trucking; and (2) Owner-operator truck drivers in California plan protests over AB5.
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