Owner-Operators Struggle With Strict Rules of AB5

When the California Supreme Court signed Assembly Bill 5 (AB5) into law, things began to look grim for California owner-operators working for trucking companies. AB5, which goes into effect on Jan. 1, 2020, puts strict rules into place regarding the independent contractor status. The status is determined by the ABC Test, which states the following three components: A: that the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact; B: that the worker performs work that is outside the usual course of the hiring entity's business; and C: that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed....

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