California Asks Court to Consider Truck Drivers as Employees

California Asks Court to Consider Truck Drivers as Employees

The state of California has asked a federal court to recognize that state law AB 5 is not preempted by federal law, and therefore motor carriers like trucking companies must comply with the law. Under California law AB 5, trucking companies that hire so-called independent contractors to drive their vehicles may be forced to reclassify those workers as employees. If the court sides with California in this case, it could have substantial implications for workers in this industry. To learn more about your rights as an employee in California, call or contact an experienced employment law attorney today.

California Law AB 5

California’s AB 5 law establishes a three-pronged test to determine whether a worker should be classified as an independent contractor or as an employee. In order to qualify as an independent contractor and not as an employee under the test, the following three elements must be true:

• The worker is free from the control and direction of the hiring for both the performance of the work and in fact.
• The worker performs work that is outside the usual course of the hiring entity’s business
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed

 If all three elements are not met, the worker is considered an employee and must be provided with the same benefits and protections of other employees. This can include workers’ compensation benefits, health insurance, overtime pay, and more.

Application to the Motor Carrier Industry

Prior to this filing, the motor carrier industry in California has not had to comply with state law AB 5 despite their prolific use of independent contractors. Typically, a motor carrier company will hire an independent owner/operator of a trucking rig to perform services throughout the state and country. This industry typically falls under the Federal Aviation Administration Authorization Act, which prohibits states from passing any law that is related to price, route, or service of a motor carrier.

However, in California’s most recent filing, the state claims that the federal law does not prohibit generally applicable state labor laws that protect employees. Proponents of AB 5 claim that there is no evidence that the law precludes motor carrier companies from contracting with owner/operators, and a trucking association conceded that it does continue to contract with truck drivers while the law is in effect. The case is now under submission with the Ninth Circuit federal court.

Implications for Truck Drivers

If the federal court sides with California on this case, it has massive implications for independent truck drivers in the state. Application of AB 5 could make truck drivers that were previously classified as independent contractors now classified as employees of motor carrier companies. As such, they would be entitled to the same benefits as other employees. They may also be entitled to back pay and other benefits depending on the specifics of the case.

Call an Employment Law Attorney

To learn more about how AB 5 may impact your employment, call or contact a knowledgeable employment law attorney today.