Contract Truck Drivers Push Federal Court to Block Dynamex Law

A group of California-based contract truck drivers has asked a federal court to block the enforcement of the Dynamex standard, which offers a more regimented method of determining if a worker is considered an employee or an independent contractor.

According to the California Trucking Association, the Dynamex standard flies in the face of federal law, and has a serious adverse effect on trucking operations for owner-operators. Assembly Bill 5, or the Dynamex standard, was signed into law in September by California Gov. Gavin Newsom, and is set to take effect in the new year. While the new labor law would provide both wage and benefit protections to about a million California gig economy workers, workers who benefit from working as independent contractors, such as contract truck drivers, may be negatively impacted.

The CTA argued that if the Dynamex law is applied to motor carriers and owner-operators in the trucking industry, it will be significantly more difficult for drivers to be classified as independent contractors.

“Until now, motor carriers could choose between providing services with employee drivers or with independent owner-operators. No longer,” said the CTA. The trucking organization expects that at least 70,000 contract truckers would be affected. If these workers are forced to abandon their role as independent contractors, they may lose out on $150,000 investments they made on their trucks, as well as their right to set their own schedules.

A.B. 5 introduces the ABC test for independent contractors, which has three main components. If each of these three factors is met by a worker, that worker should be considered an independent contractor under the California ruling. The requirements are as follows:

• The worker is free from the control/direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.
• The worker performs work that is outside the usual course of the hiring entity’s business.
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

“A.B. 5 will also constrict services in other ways as motor carriers respond to losing the owner-operator model,” said the CTA. “Some motor carriers will abandon California altogether, as some already have done. Fewer motor carriers means reduced competition, higher prices, and fewer services in the California market.”

Along with contract truck drivers, a number of other workers may be negatively impacted by this new law, including construction workers, janitors, home health aides, and more.

Can I File a Wage and Hour Lawsuit?

If you work or have worked as a truck driver and believe the company you work for has failed to pay proper minimum wage and/or overtime, you may be able to file a lawsuit and pursue compensation. Filing a lawsuit can be daunting, but consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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