Sage Datko  |  February 13, 2020

Category: Labor & Employment

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AB 5 outlines details for R&A trucking company.Companies including R&A Trucking Company may be affected by a California law regulating the way employers may classify employees and independent contractors.

California Judge Blocks ABC Test

R&A Trucking Company is a trucking company based in the San Francisco Bay area. The company is family owned and has been operating for almost 50 years. Due to recent updates to California employee classification laws, R&A Trucking Company and other trucking companies in the area may be in limbo while courts determine whether or not AB 5 applies to drivers.

AB 5 is a California law governing independent contractors that went into effect in January 2020. The law instituted a set of requirements that employers must meet in order to classify workers as independent contractors rather than employees.

These requirements are known as the ABC test. The test consists of three parts, and employers must satisfy each part in order to classify a worker as an independent contractor. Under part A, the employer must prove that the worker is free from the direction and control of the employer in terms of when or how the work is completed.

Part B requires the employer to show that the worker performs work that is outside of the usual scope of the company’s business. Under part C, the employer must prove that the worker routinely does the same kind of work they are completing for the employer in an independently established business or occupation.

Additional considerations that play a part in determining a worker’s classification include whether the employer is able to hire the worker, and whether the worker or employer provides the equipment necessary for the worker to do their job.

Due to the way the ABC test is designed, many companies that classify their workforce as independent contractors may fail at least one portion of the test. Part B is perhaps the hardest part of the ABC test for many employers to satisfy.

Many companies that classify their workers as independent contractors assign these workers work that is integral to the business. These workers, often called gig workers, include drivers who work for ride sharing apps and truckers who work for transportation companies. If these workers are required to be classified as employees, rather than independent contractors, employers will be on the hook to pay for employee benefits and withhold income, Social Security, and Medicare taxes.

On January 16, a San Diego judge issued an injunction to block enforcement of the law against California trucking companies. According to U.S. District Judge Roger Benitez, truck drivers who work for transportation companies will never be able to satisfy portion B of the test, as driving is a core part of the work done by these companies.

Additionally, according to the San Diego Tribune, the judge also suggested that truckers who were re-classified as employees rather than independent contractors would suffer negative financial consequences.

California truckers who believe they may have been misclassified by their employers may be able to hire a qualified attorney to review their case and determine whether they qualify to file a class action lawsuit.

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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One thought on Contractors at R&A Trucking Company and Others May Be Affected by AB5

  1. Rose M Parks says:

    Please add me

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