Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

New California Law Holds Retailers Liable for Truck Driver Misclassification

California Governor Jerry Brown has signed into law a bill that aims to hold retailers partly accountable for working with trucking companies that have a record of labor violations.

Steven Martinez
Steven MartinezWeb Editor
September 25, 2018
New California Law Holds Retailers Liable for Truck Driver Misclassification

A new California law would hold retailers liable for working with port trucking companies that have unpaid judgements related to driver misclassificaiton lawsuits. 

Photo via Port of Long Beach

3 min to read


California Governor Jerry Brown (D) has signed into law a bill that aims to hold retailers partly accountable for working with trucking companies that have a record of labor violations.

The bill, SB 1402, makes retailers jointly liable for violations of state labor and employment laws when they hire trucking companies with unpaid final judgements for failure to pay truck driver wages, imposing unlawful expenses on employees, failure to remit payroll taxes or to provide worker’s compensation insurance, misclassifying employees as independent contractors, and other labor law violations.

Ad Loading...

“Governor Brown’s signing of SB 1402 will allow port truck drivers to share in the benefits from California’s leading role in global trade,” said California State Senator Ricardo Lara (D), whose district includes the Port of Long Beach. “Retailers using their power to end exploitation and restore good jobs for workers at our ports will mean port truckers are left behind no more.”

Lara introduced the bill earlier this year, proposing it as a way for the state to curb a practice at the ports of Los Angeles and Long Beach that the labor department has repeatedly deemed a misclassification of truck drivers as independent contractors. The California Division of Labor standards Enforcement has won more than $45 million on behalf of 400 truck drivers in cases involving driver misclassification.

Under SB 1402, the Division of Labor Standards Enforcement will create a list of port trucking companies that have failed to pay final judgments. Retailers hiring port trucking companies on that list would be liable for future state labor and employment law violations incurred by these companies.

Ad Loading...

Harbor Trucking Association, a group that represents port trucking companies and other drayage stakeholders on the West Coast, opposes the new law, despite working with lawmakers to address concerns. In a statement to Heavy Duty Trucking, HTA CEO Weston LaBar said that the bill could hurt business in the state and may set the stage for excessive regulation in the future.

“The HTA appreciates the author’s office working with industry to remove many of the initial concerns and clarifying certain provisions,” said LaBar. “However, we were unable to remove our opposition for two main reasons. First, we feel that this bill will cause shippers to pursue cargo gateways outside of California solely on the unknown unintended consequences and mere perception of being anti-competitive. Second, because the California State Legislature routinely takes reasonable legislative measures and over time turns them into unmanageable over-regulation, with a series of trailer bills that attach new unreasonable provisions to the initial legislation.”

Proponents of the new law believe that truck drivers who are classified as independent contractors and not employees are not truly independent from the companies for which they contract. Therefore, it is contended that by misclassifying these drivers as independent, they are denying them proper wages and benefits. Other alleged practices by these companies include placing drivers in truck leases that leave them with little take home pay and no ability to work for other companies.

More Drivers

Two men in jackets with Homeland Security indicated on the back, standing in a parking lot looking toward a building with trucks in front of it
Driversby Deborah LockridgeSeptember 1, 2026

FMCSA Removes 110 Truck Driver Training Schools from Certified ELDT List

Federal regulators also are targeting more than 160 additional training providers and launching a nationwide audit of third-party CDL skills testers as part of a broader crackdown on trucking fraud.

Read More →
Illustration of tired truck driver, electronic logging device, and traffic congestion

Hours of Service Pilot Programs: FMCSA Readies for 2027 Rollout

Two pilot programs could eventually reshape hours-of-service rules, giving truck drivers options to pause their 14-hour clock or use longer split sleeper rest periods.

Read More →
Illustration with safety cones in background, Roadcheck logo, cargo tiedowns, and officer checking driver logs
Safety & Complianceby Deborah LockridgeAugust 26, 2026

Medical Cards, English Proficiency Reshape Roadcheck Violations

Medical-card violations jumped to the top of the driver out-of-service list during CVSA’s 2026 International Roadcheck, while English-language proficiency violations appeared among the leading violations for the first time.

Read More →
Ad Loading...
Illustration of data privacy, big brother concept, and truck driver behind the wheel
Safety & Complianceby Deborah LockridgeAugust 17, 2026

Driver Trust Can Make or Break the Success of Fleet Safety Technology

New Teletrac Navman research suggests that onboarding, transparency about driver data, and positive feedback can play a significant role in how commercial drivers respond to safety and coaching technology.

Read More →
Illustration incorporating a gavel, the back of a driver training trailer, and art showing a blue female shape standing out in a row of male shapes.
Driversby StaffAugust 11, 2026

EEOC Sues KLLM Over Alleged Sex Discrimination in Driver Training

KLLM is facing a federal sex-discrimination lawsuit over policies the EEOC alleges put female truck driver trainees at a disadvantage.

Read More →
Safety & Complianceby Deborah LockridgeAugust 10, 2026

FMCSA Moves to Codify English Language Requirements for Commercial Drivers

By changing regulations on English-language proficiency requirements for commercial drivers, rather than relying on a guidance memo, the FMCSA said future administrations won't be able to walk back the Trump administration's stricter enforcement with just a memo.

Read More →
Ad Loading...
YouTube thumbnail showing two Western Star trucks with the text "Behind the Experience: Western Star Star Nation"
Equipmentby Lauren FletcherAugust 3, 2026

Drivers Put Western Star Trucks to the Test at Star Nation Experience

Watch to get an inside look at the Western Star trucks, technology, and community behind the Star Nation Experience 2026!

Read More →
American flag in background with photos of military truck and Freedom Haulers ad graphic
Driversby Deborah LockridgeJuly 30, 2026

Trump Administration Looks to Put More Veterans Behind the Wheel

The Freedom Haulers program pulls together existing and expanded programs at several federal agencies to recruit veterans to drive commercial heavy-duty trucks and cut the red tape for them to get a CDL, training, and employment.

Read More →
Equipmentby Jim ParkJuly 30, 2026

Putting Mack’s Command Steer to the Test

A test drive of Mack’s Command Steer active steering system evaluates how it can make truck driving easier and less tiring.

Read More →
Ad Loading...
Truck driver behind the wheel with illustration overlaid of someone handing out cash
Driversby Deborah LockridgeJuly 28, 2026

Competition Heating Up for Truck Drivers

New report reveals rising driver hiring costs, the return of sign-on bonuses, growing AI advantages, and the operational factors shaping driver retention.

Read More →