Logistics Weekly

California Continues Battle of Worker Classification Beyond AB5

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Last month, California State Senator Cathleen Galgiani (D-5th District) introduced Senate Bill 1039. The bill, known as the “The Independent Worker Rights Act of 2020," would establish legislative findings regarding the intent of the legislature to develop a modern policy framework that facilitates independent work for those who voluntarily choose it. It would do so by creating a third classification of workers with basic rights and protections relative to work opportunities, including minimum wage and occupational accident coverage.

It appears that the State of California is under the impression that classifying workers as either an employee or independent contractor is outdated and in desperate need of updating to reflect that class of workers that gravitate towards the “gig” industry. The language is silent on what this third class would look like but plants the seed for the state to create it. TIA will continue to track this bill and report back on actions taken.

Additionally, we are hearing of about 25-30 amendments to AB5 currently sitting in the California state legislature. I don’t think there is a lot of optimism that many of these will pass. We will continue to monitor as well.

Finally, TIA will be joining the California Trucking Association (CTA) and the American Trucking Associations (ATA) on an amicus brief on AB5 that makes the case that AB5 violates federal law under the F4A.

For more information, please contact TIA Advocacy (advocacy@tianet.org, 703.299.5700).


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