This past September, California Governor Gavin Newsom signed into law new legislation focused on making things a little more difficult for independent owner-operators, such as truck drivers and gig economy workers, possibly even putting them out of business.

Taking effect starting January 1, 2020, those in the trucking industry could find themselves in the crosshairs. So, what does this all mean for trucking professionals?

Trucking Companies and Professionals in AB-5

In California, there are more than136,000 small trucking companies that are locally owned with small fleets and independent drivers who take care of their operations. This means that motor carriers and owner-operators are left in the lurch trying to figure out a strategy for what they can do now.

California is currently experiencing a truck driver shortage, much like the rest of the nation, but maybe even more so, since the state is highly dependent on the flow of goods coming from Mexico or Arizona and the flow of goods into the seaports. The new measure may aggravate the issue at hand by removing thousands of drivers from the road because of de-classifying them.

The lawsuit contends that reclassifying independent tractor-trailer operators under the California trucking laws threatens the livelihood of upwards of 70,000 CDL holders.



How Do Truckers Feel About A Mandated Jab?

26% of respondents would rather be fired than be forced to vaccinate

The vaccine has been largely unpopular among members of the trucking community since it was introduced.

A CDLLife poll of 1,053 users conducted in December 2020 found that 79% of respondents did not plan to get the vaccine when it became available. Drivers cited a number of reasons for not wanting the vaccine - some said that the vaccine was rushed, others cited medical and bodily autonomy reasons for refusal, and still more said they were concerned about side effects.

A poll conducted by CDLLife following the September 9 Biden announcement shows that 26% of the 2200 respondents say they would rather be fired than get the vaccine. Another 10.3% told us that they'd opt to quit before getting vaccinated. An additional 7.1% of respondents said that they would begin looking for jobs at smaller trucking companies that don't meet the 100 employee threshold.

The good? Truck drivers that are already vaxxed should see a bump in their pay as they become even higher demand for large fleets over 100 employees. Fleets with over 100 employees must basically have vaxxed drivers as it's near impossible to test unvaxxed drivers weekly when they are out on the road for weeks or months at a time. Not to mention the costs of trying to do this.

The bad? This will exacerbate the already tight capacity issue that exits now. Even if a very small % of drivers leave the industry, supply chains will suffer greatly. This in effect will drive freight rates even higher resulting in higher inflation in consumer products.

Supply Chains and Shippers should settle in for a long, bumpy ride.

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