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

Man seated in front of computer with inset of insights generated for a truck driver

Netradyne Intelligence Uses New AI Agents to Automate Response to In-Cab Camera Data

The company called the next-generation in-cab camera safety platform "a fundamental shift from systems that report on what happened to systems that actively drive what should happen next."

Read More →
Illustration of hourglass and trucks backed up to a dock
DriversJune 15, 2026

Why Truck Detention Keeps Costing Fleets Time and Money

A 2024 ATRI study found detention affects nearly 40% of truckload stops and costs the industry more than $15 billion annually. Despite the toll on drivers, fleets, and supply chains, the problem remains stubbornly persistent.

Read More →
Artist rendering of dealership with trucks and trailers parked outside
Equipmentby News/Media ReleaseJune 2, 2026

Prime Inc. to Open $7.9M Flagship Used-Truck Dealership

A new driver-focused facility to sell Prime Inc's used trucks and trailers will be the first purpose-built location in the company's history.

Read More →
Ad Loading...
Thumbnail for podcast episode
Safety & ComplianceMay 28, 2026

Short Takes: Inside K&B’s Truck Safety Tech

Listen to learn how K&B Transportation uses cellphone-blocking technology, speed management systems, weather geofencing, bridge avoidance tools, and more to improve driver safety.

Read More →
Nussbaum driver pay.
Driversby News/Media ReleaseMay 27, 2026

Nussbaum Expands Driver Compensation with Pay Raises, Profit Sharing

Nussbaum Transportation said its latest compensation package could push first-year driver earnings above $90,000 in key hiring markets.

Read More →
Lance Evans, Director of Safety at K&B Transportation.
Safety & ComplianceMay 13, 2026

Listen: Inside Modern Fleet Safety: AI, Cameras & Speed Control at K&B Transportation

Fleet safety is evolving fast—and technology is at the center of it. Learn how a former commercial vehicle enforcement officer turned director of safety at K&B Transportation is embracing real-world safety technology.

Read More →
Ad Loading...
Maverick Transportation Freightliner Cascadia.
Driversby News/Media ReleaseMay 12, 2026

Maverick Announces 2026 Driver Pay Raises

New raises for Maverick Transportation drivers will take effect on May 31, 2026.

Read More →
Alleged Ohio toll evasion truck.
Driversby News/Media ReleaseMay 5, 2026

Illinois Trucker Indicted for Nearly $22,000 in Ohio Turnpike Toll Evasion

Authorities say an Illinois trucker avoided paying tolls for two years, and now faces felony charges, possible prison time, and forfeiture of his Freightliner tractor.

Read More →
Illustration with trojan horse and lock with inside of cargo container in background
Fleet Managementby News/Media ReleaseApril 23, 2026

New Trojan Driver Cargo Theft Scam Bypasses Carrier Vetting Systems

Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.

Read More →
Ad Loading...
Female truck driver.
Driversby News/Media ReleaseApril 21, 2026

WIM, Trucker Path Name Top 3 Women-Friendly Truck Stops

ATA’s Women In Motion Council and Trucker Path highlight three truck stops that meet all seven safety-focused criteria and rank highest among female drivers.

Read More →