Tens of thousands of independent California truck owner-operators could be out of business soon under a new statewide worker classification law designating them as employees.
On June 30, the U.S. Supreme Court denied a review on whether California Assembly Bill 5 (AB-5) violates the Federal Aviation Administration Authorization Act of 1994 as it applies to self-employed truck drivers.
“Gasoline has been poured on the fire that is our ongoing supply chain crisis,” the California Trucking Association (CTA) wrote in a June 30 response to the high court’s decision regarding the association’s legal challenge to the bill.
“In addition to the direct impact on California’s 70,000 owner-operators—who have seven days to cease long-standing independent businesses—the impact of taking tens of thousands of truck drivers off the road will have devastating repercussions on an already fragile supply chain, increasing costs and worsening runaway inflation,” the association added….