KyTrucking.net 7 Unfortunately, the courts have decided that AB5 covers all independent contractors involved in transportation. Nailing down the specifics for this too-vague ruling will have to be done through the court system. I think trucking efficiency will continue to suffer, and it could change the trucking industry across the nation. People predict AB5 will make remaining independent something that is prohibitively expensive. An employer-employee business model is different from a model using motor carriers and owner-operators. Shifting from one model to the other will be expensive and burdensome. California owner-operator partnerships are eyeing their options. Some may move their businesses; others may choose not to haul loads if they start in California. We support other associations, like the California Trucking Association, which oppose AB5 because of the potential damage it has already caused. I want to ensure it affects our association’s members as little as possible. As always, it is my honor and privilege to be KTA’s president. If you have questions or concerns about AB5, please don’t hesitate to get in touch with me. Let’s work together and protect our industry. The fine for violating AB5 is up to $25,000 per violation. It’s unclear whether it applies to people who aren’t California residents, but who wants to find out?
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