SACRAMENTO – On Tuesday, Assembly Republicans sent a letter to Governor Gavin Newsom, urging him to delay implementation of AB 5 or exempt independent truckers entirely from its employee reclassification (ABC) test. The Supreme Court declined to hear a case on June 30th that would have challenged the new law, now putting AB 5 on the fast-track for going into effect in California.
“California’s and the nation’s economy in part depends on our ability to move products through our ports. The employment standards that AB 5 sets for independent truckers puts more undue stress on our economy and will increase shipping costs, driving inflation even higher. We are trying to prevent our already strained supply chain from getting worse, and if there are cuts to the trucking workforce, this will hurt both businesses and consumers.”
-Assembly Republican Leader James Gallagher
“The sad reality is that the devastating ramifications of this ruling will be felt most among minority truck owners – my constituents. Not only will the rollout of AB 5 hamper minority truck owners in their goal to achieve the American Dream, but it will also force our owner-operator fleets to give up their independence and ability to work on their own terms. Many of the signatories of this letter argued strongly against AB 5 on these grounds. While I respect the Supreme Court’s decision, this issue falls upon the failures of our state to prevent unintended consequences of rash policy decisions, such as AB 5.”
-Assemblymember Devon Mathis
The letter calls on Governor Newsom to use his executive powers to either delay application of AB 5 or exempt the trucking industry altogether from the ABC test, which determines whether a worker is an employee or an independent contractor. By not taking action, the Governor would be eliminating 20 percent of California’s vital supply chain workforce.
To view the letter signed by California Assembly Republicans in its entirety, please click here.