Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

California Governor Signs Law That Threatens Independent Contractor Status

California Gov. Gavin Newsom on Sept. 18 signed Assembly Bill 5 into law, a measure that trucking interests in the state say will wipe out the ability to use owner-operators.

Deborah Lockridge
Deborah LockridgeEditor and Associate Publisher
Read Deborah's Posts
September 18, 2019
California Governor Signs Law That Threatens Independent Contractor Status

Teamsters from local unions within Joint Councils 7 and 42 took part in multiple lobbying days in Sacramento in support of AB5, meeting with legislators.

Photo: Teamsters

4 min to read


California Gov. Gavin Newsom on Sept. 18 signed Assembly Bill 5 into law, a measure that trucking interests in the state say will wipe out the ability to use owner-operators.

In a signing statement, Newsom called the bill “landmark legislation for workers and our economy.” It will reduce worker misclassification, he said, of workers being classified as independent contractors rather than employees, and tied the issue to “the hollowing out of our middle class.”

Ad Loading...

He said the next step is “creating pathways for more workers to form a union… while preserving flexibility and innovation.” He pledged to “convene leaders from the Legislature, the labor movement and the business community to support innovation and a more inclusive economy.”

Much of the attention around the bill, which goes into effect in January, has centered around “gig” workers, notably drivers for Uber and Lyft, who operate as independent contractors. The author of the bill, Assemblywoman Lorena Gonzalez (D-San Diego), called them out in her statement on the signing of the bill, but also truck drivers:

“By applying a strict test to determine who is an independent contractor and making employment status a default under the law, working Californians who have been kept off payroll as employees will gain access to basic labor rights for the first time, including rights to minimum wage, overtime, unemployment insurance, workers’ compensation, paid sick days, paid family leave, workplace protections against harassment and retaliation, and the right to form or join a union. Some of the many workers who will benefit include janitorial workers, construction workers, port truck drivers, home health aides, hotel and hospitality workers, delivery and ride-hail drivers.”

Truckers on both sides of the issue lobbied legislators on the bill. Teamsters from local unions within Joint Councils 7 and 42 took part in multiple lobbying days in Sacramento in support of AB5, meeting with legislators. Independent truckers told legislators about how they were building their own successful businesses and didn't want to be employees.

The California Trucking Association and the Western States Trucking Association have spoken out against the bill, saying it will end the use of independent contractor truckers in the states. CTA tried to work with legislators to address the issue of worker misclassification while still allowing “true” independent contractors to work in the industry.

Ad Loading...

Los Angeles-based Sandra Alzate, a WSTA board member, told Reuters that she hires independent owner-operators when her customers have more work than her four-truck company can handle on its own.

“I’m going to lose clients because I can’t provide the trucks they need for their jobs,” she said, adding she had already planned to invest $400,000 on two truck upgrades and cannot afford to hire additional drivers or buy additional rigs.

However, the Owner-Operator Independent Drivers Association takes a more wait-and-see attitude regarding how the new law will affect trucking. OOIDA told its California members, "We see it as self-inflicted by motor carriers after decades of treating drivers like indentured servants, perpetuating an environment with awful working conditions, and a failure to pay drivers anything close to a living wage. We know there is a concern that it might be difficult for many owner-operators and motor carriers to comply with the part 'B' requirement. At this time, we think that's a premature assumption.

"However, should this new law negatively impact legitimate independent owner-operators, we will challenge it in every way possible," OOIDA said. "Our hope is that it will force motor carriers in California to rethink the way they treat drivers and either hire them as employees or restructure traditional lease agreements to give owner-operators real independence.  It's also possible we'll see wages increase as a result."

There is litigation challenging the applicability of this law to trucking, which was filed after the California Supreme Court ruled in the Dynamex case that the ABC test must be used when evaluating wage and hour classification in class action cases. The problem with the ABC test is the “B” prong, which states that to be a contractor, the worker must perform “work that is outside the usual course of the hiring entity’s business.”

Ad Loading...

The California Trucking Association's lawsuit argues that the Dynamex ruling should not be enforced because it is preempted under the supremacy clause of the U.S. Constitution. This sets the decision in direct conflict with a federal law Congress passed in 1994, part of the Federal Aviation Administration Authorization Act, to prevent states from enacting laws that affected a motor carrier's prices, routes and services. The Dynamex decision also imposes an impermissible burden on interstate commerce under the U.S. Constitution’s commerce clause, CTA contends.

Meanwhile, Uber and Lyft have said they are making no plans to turn their contractors into employees, claiming the law doesn’t apply to them. The drivers aren’t part of the “usual course” of their business, they contend, because they are simply tech platforms for digital marketplaces and aren’t actually in the business of providing transportation.

But they’re hedging their bets, too. Recently, Uber, Lyft, and DoorDash announced they’re pouring $90 million into a 2020 California ballot initiative that would directly appeal to voters to undo the legislation.

Full text of the bill:  http://leginfo.legislature.ca.gov

More Drivers

Illustration of truck owner operator and magnifying glass with the word "regulations"
Driversby Deborah LockridgeFebruary 26, 2026

Owner-Operator Model Gets Boost as DOL Proposes 2024 Independent Contractor Definition Reversal

For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.

Read More →
 Truck with door open and enforcement officer talking to driver about ELD
DriversFebruary 26, 2026

FMCSA Reinstates Field Warrior ELD to Registered Device List

One electronic logging device has been reinstated to the FMCSA's list of registered ELDs.

Read More →
Photo of truck driver in yellow safety vest walking alongside tractor-trailer
Driversby Deborah LockridgeFebruary 25, 2026

How One Company is Using Smart Suspension Technology to Reduce Driver Injuries and Improve Retention

America’s Service Line adopted Link’s SmartValve and ROI Cabmate systems to address whole-body vibration, repetitive strain, and driver turnover. The trucking fleet is already seeing measurable results.

Read More →
Ad Loading...
Illustration with photos from some of the 2026 Best Fleets to Drive For honorees
Driversby News/Media ReleaseFebruary 24, 2026

CarriersEdge Announces 2026 Best Fleets to Drive For

The 18th annual contest recognizing the best workplaces for truck drivers sees changes to Top 20, Hall of Fame

Read More →
Illustration of driver students around trucks with distressed graphic elements and safety cones
Driversby Deborah LockridgeFebruary 19, 2026

FMCSA Targets 550+ ‘Sham’ CDL Schools in Nationwide Sting Operation

The Federal Motor Carrier Safety Administration issued more than 550 notices of proposed removal to commercial driver training providers following a five-day nationwide enforcement sweep. Investigators cited unqualified instructors, improper training vehicles, and failure to meet federal and state requirements.

Read More →
 Illustration showing a driver behind the wheel, DOT offices, and examples of problematic non domiciled CDL
Driversby Deborah LockridgeFebruary 18, 2026

DOT Alleges Illinois Issued Illegal Non-Domiciled CDLs

Illinois is the latest state targeted and threatened with the loss of highway funding by the U.S. Department of Transportation in its review of states' non-domiciled CDL issuance procedures. The state is pushing back.

Read More →
Ad Loading...
 Illustration showing a driver behind the wheel, DOT offices, and examples of problematic non domiciled CDL
Driversby Deborah LockridgeFebruary 12, 2026

FMCSA Locks in Non-Domiciled CDL Restrictions

After a legal pause last fall, FMCSA has finalized its rule limiting non-domiciled commercial driver's licenses. The agency says the change closes a safety gap, and its revised economic analysis suggests workforce effects will be more gradual than first thought.

Read More →
Photo of Stone's Truck Stop
Driversby News/Media ReleaseFebruary 5, 2026

Trucker Path Names Top Truck Stops for 2026

Truck driver ratings reveal the best chain and independent truck stops in the country.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Ad Loading...
Podcast thumbnail saying "Are we in for more regulatory turbulence?"
DriversJanuary 23, 2026

What FMCSA’s New Enforcement Push Means for Fleets in 2026 [Podcast]

Listen as transportation attorney and TruckSafe Consulting President Brandon Wiseman joins the HDT Talks Trucking podcast to unpack the “regulatory turbulence” of last year and what it means for trucking fleets in 2026.

Read More →