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CA Owner Operators to be Reclassified as Employees

By Brooke Beall

 

A California law set to go into effect in January 2020 will reclassify many independent contractors as employees. The trucking industry regularly uses independent contractor drivers, often referred to as owner operators.

Why?
Under the new law, you cannot be considered an independent contractor if the services performed are part of the company’s typical course of business.

Overarching Consequences
The law, however, has unintended consequences for owner operators, forcing them to leave California, change industries, become employee drivers, or get insurance and operating authority. And, New Jersey is considering a similar law.

Jetco Delivery CEO Brian Fielkow recently spoke with Fox News about the potential effects of this change in the face of an ongoing driver shortage.

Read Fox News Article

Effects on Texas, Jetco, and Your Business
Currently, this issue does not affect Texas and Jetco specifically.

Because we recognize that many of our clients ship in/out of California, we felt it was important to keep you up to date on this issue. We support our industry and voice our concerns about regulations and laws that not only could affect us, but the industry as a whole.