This fireside chat recap is from the FreightWaves Enterprise Fleet Summit.
FIRESIDE CHAT TOPIC: Waiting for the word from SCOTUS: Will AB5 take root in California?
DETAILS: California’s trucking sector awaits word from the U.S. Supreme Court on whether AB5, the stringent independent contractor law, will be implemented in the state or kept on the sidelines.
SPEAKER: Greg Feary is a partner at the trucking-focused law firm of Scopelitis, Garvin, Light, Hanson & Feary.
BIO: Feary is president of the Scopelitis law firm as well as a partner. From the firm’s home base in Indianapolis, Feary focuses on independent contractor issues and legislation as well as transportation insurance and corporate structure designs to reduce exposure to the firm’s transportation clientele.
KEY QUOTES FROM FEARY:
On how a trucking company in California could meet the B prong of the ABC test under AB5: “You’re going to have to convince a judge that your trade, occupation or profession is different than who you are dealing with, who is hauling the goods and delivering them.”
On independent owner-operators becoming employees if AB5 is implemented in California trucking: “How do you think that is going to happen if they have selected being independent contractors? They bought their own truck. They had opportunities to be employee drivers.”
On the possible model in which a carrier becomes solely a broker: “I think the brokerage model would be somebody deciding that their entire operations in California would be only as a property broker tendering freight to motor carriers for delivery.”
“I have clients saying, ‘It’s not worth operating in California anymore. The revenue we get is not worth the liabilities.’”
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now