California Legislature Passes the Employee and Independent Contractors Bill (AB 5)
NEWS // December 10, 2019
CALIFORNIA (Dec. 10, 2019) – In October, California Governor Gavin Newsom signed into law the Employee and Independent Contractors Bill, also known as AB 5, without an exemption for owner-operators.
The new bill will go into effect Jan. 1, 2020, and makes the classification of workers as independent contractors very difficult in California.
While we are disappointed by the passage of this legislation in its current form, we remain committed to serving your needs in California. Significant change will be required, as our business has thrived for many years from contracting with professional, independent owner-operators to service our customers in partnership with our agents. While it is early, it is reasonable to expect these new requirements will disrupt existing pricing structures. We will continue to monitor these developments and will be in contact once we have fully evaluated the impact to our business.
If you have any questions, please contact your Suddath account manager.