Supply Chain
California Throws 70,000 Truckers in Gig-Work Legal Limbo, Risking Supply Chains
- Two-thirds of state’s port truckers could be forced off road
- Operators have known for 2 1/2 years this may come: lawmaker
Photographer: Victor J. Blue/Bloomberg
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About 70,000 truck owner-operators who form the bedrock of California’s transport industry are in limbo as state-level labor rules start applying to them, creating another choke point in stressed US supply chains.
Almost a dozen truckers told Bloomberg News they’re unsure how to comply with California’s Assembly Bill 5, which requires workers satisfy a three-part test to be considered independent contractors, or else be seen as employees entitled to job benefits. The trucking industry relies on contractors -- who until now have had flexibility to operate on their own terms -- and has fought to be exempt from state regulations for years.