In the past two months, the California Trucking Association (CTA) has spent over $1 million fighting the gig economy law, CA AB5. After the courts upheld the CTA’s initial preliminary injunction request, the state of California filed an appeal. The law now sits in the Ninth U.S. Circuit Court of Appeals. The fight could go all the way to the U.S. Supreme Court.
And now, we’re watching the same scenario unfold in New Jersey. The NJ S4204 gig economy bill made headlines in December for demanding the same types of ABC tests as CA AB5.
Justin Clarke, CEO of F|Staff states, “While the final outcome of these bills and laws remains to be seen, one thing is clear: change is coming to the trucking industry. We’re not sure what it’s going to look like yet, but drivers and carriers need to stay ahead of the latest developments to protect themselves and their businesses.”
Owner-operators leave CA over gig economy law
There are more than 70,000 independent truckers that call California home. They’ve purchased trucks, maintained their own insurance, and created lives for themselves as contract workers. Now, and despite the court’s stay of CA AB5, carrier companies are refusing to give loads that originate in California to independent truckers.
In response, owner-operators are eyeing “truck-friendly” states. They’re selling their homes and moving their businesses before their way of life is further threatened.
New Jersey’s push for a gig economy law sows doubt
“New Jersey’s S4204 is very similar to CA AB5 in its wording,” states Clarke. “The bill is still under debate, and would surely be challenged if passed. But there’s a precedent that’s been set in California, and we’re starting to see the ripple effects across the country.”
For now, New Jersey’s elected officials have delayed voting on the bill. They are watching the California challenges closely. If the CTA loses their fight, the precedent set will fundamentally change trucking as we know it.
Meanwhile, the fate of independent trucking hangs in the balance. As additional gig economy bills hit debate floors across the nation, independent contractors and owner-operators will find a narrowing field of “trucker-friendly” states. The threat posed by 1099 worker status will outweigh the benefits for carriers, and drivers will face increasing pressure to give up their gig lives in favor of full-time employment.
A new type of independent trucker
Gig economy laws may change the future of trucking, but there is an answer for both carriers and drivers. F|Staff is the first-of-its-kind app that connects drivers and carriers in real-time. With the F|Staff app, drivers can find work that fits their needs and schedules. And carriers can avoid costly penalties associated with gig worker law enforcement because all F|Staff drivers are employed on W2.
All F|Staff drivers undergo a full employment process, including DOT validation, drug screening, and background checks, so carriers know they’re getting high-quality workers. Additionally, carriers can filter drivers based on preferred driver pools and custom hiring requirements.
“F|Staff is the answer to the new gig economy laws,” says Clarke. “Truckers get to build a gig economy career that gives them both work-life balance and benefits, and carriers always have access to a ready-made workforce of qualified drivers.”
Future-proof the trucking industry with F|Staff
Getting started with F|Staff is easy. Apply online as a carrier or a driver, and we’ll contact you to help complete your application and onboarding process. As a driver, you’ll enjoy new freedoms in building your career. And carriers will gain access to a gig-worker-law-proof workforce at their fingertips. It’s a win-win.