GAME OVER! Thousands of Owner Operators Set To Lose Jobs In CA...AB5 LAW! 

There are many companies out there that take advantage of drivers. They make them sign contracts as independent operators to avoid giving them benefits but they make them work as employees! People from Eastern Europe in Chicago area are notorious on this type of business model! Trucking industry seems to be changing from bad to worse!

I have done extensive research on AB5. There are some major clarifications that need to be made to this video. AB5 DOES NOT apply to incorporated entities. The important part is to understand you have to apply the full structure of asset protection to be approved for the exemption. (1) You have to INC/LLC your trucking company. (2) You have to register an EIN with the IRS for your company. (3) You have to set up a business bank account using your EIN. (4) Your accounting practices have to show the business income is not being used for personal expenses. (5) All your licenses and insurance have to be in the business name. The point is to clearly separate your business entity from your personal entity. If this is done properly AB5 would not apply to you whether you are a rideshare driver or a freight driver.

This is a job killing law, truckers don’t want to be employees

Man look, it’s a wrap, but there is always some way around it. Self driving trucks are a bigger threat than the AB5.

unions got that passed

Landstar said Fine...if you have a Cal CDL, if you want to continue with Landstar you either move out of the state and get a new state CDL or you won't work for Landstar. That is all. These types of Companies will and have said enough, we are done with California.

I’m against AB5, but something needs to be done about H2B visa drivers. These visa drivers and their companies are the ones going around lanes and causing massive drops in freight. They have an incentive to do so because they’re only here for the visa and currency difference. They’re ok booking $1/mile loads because $500/month take home pay, is a lot of money in the country that they live in. California, New York and New Jersey has tons of these visa drivers. The SEC in the investing world, is not like the FMCSA. The SEC made it illegal to trade securities if you’re not a US citizen, and you can’t even use US brokers if you are outside the US border. There’s a lot of red tape waiting for the FMCSA and DOT.

This would potentially force an Owner Operator to look into running under their own motor carrier authority which is more complex and costly than just being leased on with a carrier. Good luck to all of the Independent contractor's having to deal with this.

This been around for a while now. It’s basically saying either get your own authority or become a company driver. It’s getting rid of lease on contracts.

I just got out of trucking in December 2021. This is going to cause a major problem in California. Over 75% of trucks hate going into California already because of the unrealistic laws.

It goes to show you that nothing is guaranteed when it comes to earning a decent living. I remember a bout 10 years ago that I was told that as long as I have a good driving record and a clean background and my CDL is in good standing then I would have a job for life! Well, so much for having a clean background and a clean CDL? Benjamin Franklin said it best..."The only thing that is guaranteed in life is death and taxes."

So much abuse in this industry…How about those forced to accept 1099 even they worked as a company driver but without any benefits?

Truck driving employees don't pay for fuel or maintenance on their truck,neither a owner of a company.

Dude, Just stop. AB 5 codifies into a Labor Code statute and has a business to business exemption. As long as the owner/operator has their own authority, business license and markets themself to the public, they are fine. The only ones that are at risk are lease/operators. The Supreme Court has already declined to hear the case, so the injunction has been lifted.

This ab5 only applies to truck drivers it doesn't apply to taxi cab drivers doordash drivers Uber Lyft it only applies to truck drivers I'm truck driver I've been one for 40 years this government is f***** up I think all the truck drivers in a small trucking company need to stick together and fight back I live in Nevada there's no way in hell I would live in California I refuse to go into California this is really going to hurt like the drivers that go into the the shipping yards and get shipping containers they talk about not getting their stuff now wait and see when this happens we'll be lucky if they see something within 6 months this is literally going to shut the whole thing down people in California should be idiot politicians out I don't like Republican I don't like Democrat you know damn well these politicians who did this are getting paid to do this by lobbyists special interest groups these politicians need to be removed from office

I believe that the AB5 Law was also created partially in part for Uber & Lift drivers seeking employee benefits from their respective companies. I drove for Uber once and never saw the need to be an employee. Why would anyone? It seems to me like that just defeats the whole purpose.

if truck drivers stopped hauling into California and start dropping at the state line all this would stop but you know greed runs everything

A concerted effort to crush the little man and limit the number of entrepreneurs.

This law has always been in existence. If your a 1099 worker by law your supposed to be receiving the money directly from the source, not receive it from a middle company. If your receiving it from a middle company then you work for that middle company and receiving a paycheck from them. That convoy stunt along with the parking trucks in front of the Whitehouse had to come with repercussions. Anyone who grew up in any ghetto knows the system always retaliate everytime you challenge it. Truckers have awaken the sleeping giant and it is on the prowl. Wasn't it the owner operators who orchestrated the convoy? Wasn't it the owner ops who parked in front of the Whitehouse? Didn't the fuel prices shoot up the minute the owner ops decided they were going to drive from cali to DC? Like I said, the sleeping giant has been awaken and he knows how to play chess very well.

This law is actually great. How can you call yourself an O/O if your running on someone else's authority?🤷🏾‍♂️

This is a good thing. It means get a real authority or drive for someone. Eliminating the scam of leasing a truck

It’s time for the people to take back and stand ground for laws that tyrants pass and the people don’t pass.

You know I have one question for the same people loving politicians, where is the law to protect humans being replaced by AI, Robots, Algorithms and Drones? How about nowhere and NEVER?

Landstar just wont run in CA and im glad i have my own authority less dumb truckers on the road more freight for me to move

This is nothing new and won't hurt, "TRUE", owner operators nor the contracting system in which they currently operate under. FedEx Ground has already laid out the model for working around AB5. They converted all their, "Independent Contractors", which are still treated and controlled as employees, into contracted corporations. All the contractors had to create an LLC or other type of corporation in order to stay with FedEx Ground. It's a very simple process and in turn, FedEx Ground no longer has contracted, "individuals". As for Landstar, I really don't understand why you brought Landstar into this mix, because Landstar owner operators are the only type of trucks and drivers that they use and do NOT control their owner operators like employees, in terms of directing them when to work and where to work and what to where and how to perform the services, like FedEx Ground does. Landstar allows true freedom with the privilege of working under the their carrier credentials, for a nominal fee, of course. This A-B.S. is for companies that use employees, but tag them out of social security, health and other benefits by labeling them as independent contractors.

Being an independent contractor on a factory floor, or something like that, it would make total sense because they would make pennies outside of this law. So i understand it. As far as trucking, theres big money in being independent. Its up to you as the O/O to choose if you want to use the money you make to buy your own health insurance or contribute to your retirement. Works good for nurses too, ie travel nurses. But in a typical factory or place of employment where all tasks are preformed under one roof, its understandable to enforce it

This law is all about tax & revenue for the state. California has a gross domestic product of 3.4 trillion dollars. The most of all US States. You best believe the State of California has already calculated the amount of increased revenue it will be entitled too. This will not end with California. This is just the beginning....the more they see the more they want.

It's all about money. The government wants more money from you

This AB-5 law is why a law to own an AR-15 is necessary

I hate California for a lot of reasons. Their regulations are horrendous. That being said, the main problem in trucking is that lease-operators have turned into modern indentured servants. You're stuck to a company (like an employee), but they control how much you can make, and you can't create a side-business with 'their' lease equipment. You also have a lot of tax and benefit issues that employees don't have as a lease operator. I have a Bachelor's of Finance and I still refuse to be an owner operator. I work for a company, make $100k per year working M-F, days. I have medical benefits, etc. The company has the job of drumming up the work, maintenance of the equipment, dealing with all of the administrative aspects, etc. I come in, bang out my schedule, and leave. For that, I get paid relatively well, and have fewer complications.

Sorry Brandon but you are wrong, ab5 is specifically for the trucking industry and it's already law. It is for lease operators that leased to a company running under the authority of the company not owner operators that have their own authority. Basically it comes down to taxes and maybe how companies treat the drivers. My guess is it's taxes being this is california doing this, they've already proven they don't care about anyone so it's taxes, they see that major trucking companies don't have to pay employee income taxes because of 1099 so they want to change that all drivers working for companies in california have to pay income tax on all those drivers

As a former trucker who has been ripped off by those companies that lure drivers claiming you are an "independent contractor" but in reality, you're only a slave to a single company, AB5 is great news. You are not able to lease a truck and choose to pull for other companies. Landstar, Schneider, and all the others will lose the fight. Bet on it! This came about because the interests of states were being trumped by the interests of big business. States were on the hook for social security, medical, and worker's comp while big business reaped in loads of profits. The independent contractor status was fast becoming a tool to avoid paying out insurance for workers, thus the federal government took notice and in particular, the IRS. It is important to note also, that California, New York and Texas are bell weather states, which mean that national law almost always follows whatever laws are passed in these states.

Pretty stupid all those drivers needed was an accountant to set up payroll and get their business as a subcontractor to pay taxes and social security and get themselves benefits like healthcare

Owner operators won't be able to contract with brokers that have an Mc number because that number technically makes them a motor carrier.

The purpose of AB5 is to protect workers, corporate America/big business look after their interest first and foremost. If a company is not doing well, a way to make it seem like it can boost it's profit is to get rid of workers. Truckers should be careful as to what this means. AB5 may actually be in truckers better interest. Landstar seems to be acting more like a frieght broker/dispatch service, so even if AB5 passes, it shouldn't be difficult for Landstar to transition itself into a stand alone business that offers these services to independent owner operators. What Landstar may have an affect is on Landstar's dispatch service if Landstar is solely viewed as broker. The loads will still exist. In as far as Uber/lyft, Uber should be required to get these people health insurance, unlike truck drivers, Uber drivers can't simply go independent, they are technologically linked into this company as nodes.

OKAY, now I get it:under INDEPENDENT CONTRACTORS, labor benefits are the responsibility of the driver, i.e.health and welfare,but being classified as an EMPLOYEE the responsibility rests on the Company which employs. This is the battleground California is engaged in with Trucking Businesses. If this is the case,there are quite a few Pros and Cons to considered by the Individual Driver...particularly, when the "STATE" challenges "Organized Business" on behalf of the Laborer(the equivalent of two devils fighting for the soul of the individual). This mirrors the historical example of how the FEDERAL RESERVE started with the objective of centralizing all banking activities...interesting.

I don't understand why the AB5 law in the State of California hasn't been challenged by the U.S. Constitution, Article I, Section 10, which states: "No State shall... pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts...." Provided that the U.S. Constitution is the Supreme Law of the Land, this AB5 law in the State of California can be strucked down with the legal challenge of the U.S. Const., Art. I, cl. 10. In other words, no state has the right to interfere with the "[o]bligation of contract" between individuals. Food for thoughts! 😂🤣😂

I really believe that it's a plot to make things much harder for the little guy. I don't think that the law will be honest. Example: if you are XYZ Company and your driver drive XYZ rigs but to save company money, you call them contractors is 1 thing. But if you are XYZ and you hire CBA a different company, to haul freight, that business model shouldn't be affected. And yet in reality, the big boys are just going to do some maneuvering and that Law might only affect CBA contracting with XYZ. And only entery level drivers and new drivers for XYZ.

Landstar is different. They have a load board. We can choose our own loads there.independent. contractors are independent. In case of other companies we have to take dispatch from that company. Which limits independence.

Get own authority because when it goes through they are going to need independents to move thei freight. Take the good with the bad and the bad with the good. Landstar pulled out because they know something and that’s why they pulled out. It’s going to go down because the system is about to be put in place. U haven’t seen nothing yet my friend, this is only the beginning.

But ab5 is against strippers, electricians, plumbers, real estate agents, brokers and etc. but as a landstar bco, landstar will not go against this. Even in 2020 they told us to not get loads in California or leave if u dont agree or get another address. I had to move to texas because this isn’t something that will not go away.

Just get your own plates and authority

These companies need to go under water asap here I go cr england/knights/warren/Swift Transportation/prime/jb hunt/

Update: US Supreme Court has declined to listen to the challenge to the AB-5 law. As of me writing this, the law has taken effect. It will not be enforced at the DOT (truck scales etc.) level but at the USDOT Audit level.

Truck your AB-5. we as truck drivers , will boycott your state!!!! Don't cry when you have no food or clothing!!!

Ok, so im assuming that everyone is generally confident AB5 will NOT spread to other states. There hasnt been anyone talking about it at all. All I can find on RU-vid is videos several months old or even YEARS old.

This started with Uber drivers. If 1099 sucks, give benefit to your driver. Lot tick bait right now you tube saying Is Over to Owner Operator. You own a buisness take care your empoyees.

Leasing on to a company to be an owner operator is not the same as ownership. You can't quit and take the truck with you. You don't get the befits of ownership. That's exactly what this law was made for. Basically if you sign a lease the truck is yours and your name needs to be on the title as owner. Not unless you meet conditions abcdefg doesn't count as ownership. 1099 as a truck driver does not constitute ownership. Apparently no truck driver really understands what being an owner really means.

64 years . .. ..🎩 ,and don't get me wrong brother ; it's just the future. amen 🇺🇸

Feels like a way to push out independent owner drivers and forcing them to be company drivers making way less and making more profit for big carriers( swift, jb, etc). Just one constant undercutting on American truckers profits and increasing the monopoly, power, and profits of a “big trucking” since Carter

AB5 in California seems to want to end a huge segment of the US Trucking industry, independent owner operators. Sounds to me like California lib politicians are catering to mega trucking firms and unions. Prices will go up for all consumers. Insurance costs for independent owner operators switching to INC status will probably skyrocket. The fix is in and CA AB5 be damned.

The original jerks that caused the problems were Lyft and other company who cheated there drivers and stole there benefits

Obviously it's a powerplay and done because of what happened in canda being pushed forward.

When immigrants work for half rates, citizens end up taking the dick end part of theyre cheap labor. Why use citizens for full pay when immigrants do it for cheaper ? Construction had the same issue in the 90s

Will it good because I watch loads go from 1.50 /mile to 50 cent/ mile seems like they manipulate the pay.

Gary Bregel 0 seconds ago Can the Owner Operator move his address to another state and still work in California.

You can make $25 to$29 an hour as a local driver use there truck and trailer they pay for the fuel and maintenance.it’s not that bad over $60,000 a year and bounes

Why is there a problem, as independent owner driver's operating as a business or sub contracting is a worthwhile activity. So long as they know their costs, and the billings enable a profit . There should not be a problem for genuine owner drivers. But if the driver is a defacto contractor to avoid employment costings for the prime contractor with low pay for the driver saving money ,the law is required. Honest brokers and operators in a mutually beneficial free enterprise relationship should be respected.

This country needs to disband and everybody go your own way. People have a choice to be an employee or an employer. Think before you commit yourself period.

If independent contractors have to be employees next time there's a pandemic we all would be home collecting unemployment.then this nation will come to a stop.

the companies are getting ready for self driving trucks. soon even thw longshoremen will be worry8ng about their jobs. roboticd hace cina a long way and the ports can basically be operated with just a handfull of techs and supervisors. the days of massive labor intensive industires is coming to an end really fast.

why has fuel increased as much as it has, and freight rates have gone down? who is pocketing the carrier's money?

Hey farm boys grain contact s out of the elavators will be affected when grain company hires you to to move their products .hey bill gates you cant sell potatoes to McDonald's because you are a contractor to them special farm product man

THERE ARE A LOT OF BUSINESS ONWNERS DOING 1099 FRAUD WITH THEIR WORKERS. WHERE THE WORKERS DO NOT OWN ANY OF THE EQUIPMENT. THE COMPANY OWNERS ARE JUST TRYING TO FLY UNDER THE RADAR. RISKY FOR THE WORKER IF A ACCIDENT OR LAW SUIT COMES UP.

I bet the big carriers in California are smiling right now. My how that lobbying money pays off.

Sounds like they want to reduce the deductions and make you pay more in TAXES.

Solution: move out of California, & operate in freedom states! Too easy...

Soon California will not allow fossil fueled vehicles to operate in their state. That will be interesting.

Should of put Elder in office during the recall. Who's fault is this.

It’s all about the Democrats supporting Unions. Vote em out!

not true, alot of people is not reading the law, yes its long to read and its just saying u have to have ur own authority, where u have more control

A lease operator is different than a actual owner operator. They are not a called a company.

What is the REAL goal behind them doing this? it seems so ridiculous!

😂 it’s over SCOTUS shut you all down.

This is to keep companies from misclassying employees and under paying independent contractors and treating them like employees and under paying them

I never hauled a load to Cali nor ever plan on it. I mean you guys should've left Cali long ago

Landstar is not based in California so ab5 will not affect them.

lease operators not owner operators . it is going to get rid of the lease bullshit, it's a good move.

Amazon and Walmart need to step up and help owner operators out

If you don't have your own authority then your are not independent.

Just move outbof there daa it's easy I did and doing good in TX

As a newbie how do I get myself start in this business?

New Jersey has a law like this in the works called s4204 (it most likely will pass)

Just do it through a trust if it's more profitable

Can't use brokers anymore in California

No it only apply to 1099 ppl and lease owner operators

It will NEVER happen, too much at stake

Hows that biden vote working out?

Landstar moved out of ca

Tesla truck is the solutions !!

They have to get their own authority

I don't understand why truckers don't have a union.

What if nothing happens....!!

It should also apply to McDonald’s, Wendy and Burger King franchise doesn’t it?

thanks for sharing

Put me out of business totally

I Just Became Freightbroker Passed my finals And I'm A X Truck Driver know alot of Owner Operators ogosh Waiting for my certification ..

Call about the money taxes

Just move to another state!

If I’m looking to get my cdl but I have a crash on my record from 2 years ago can I still get it ? And will company’s hire me