Yahoo Finance's Dani Romero explains what California's new gig worker law means for truckers and supply chains.
- Well, there's a shake up in the gig economy on the West Coast. Assembly Bill 5 also known as the Gig Worker Law took effect last month and it requires independent contractors to be classified as full-time employees by the companies that hire them. Yahoo Finances Dani Romero here in the studio with the latest. Dani?
DANI ROMERO: Yeah, so the trucking industry is really unsure how California's Assembly Bill, AB5, also known as the Gig Worker Law, will really roll out and how this enforcement will really take place. The law took effect, like you said, last month after the US Supreme Court decided to really decline the case from California's Trucking Association. So because of that refusal, that allowed the law to really roll through and move forward, which really sparked a lot of those protests that we saw at the Port of Oakland.
AB5 requires, like you said, independent contractors to be classified as full-time employees by the companies that hire them. About 70,000 truck drivers will be impacted by this classification, according to the CEO of Harbor Trucking Association. And not only that, but supporters of the law, including Union workers who I've spoken with, say that this is actually a benefit because it will allow workers for those fair wages, as well as for them to have insurance.
Now, those that oppose it, they really argue that the change will really squeeze them out of the market and even many of these freelancers will be out of a job. And so many trucking companies, especially the out of state ones, have no longer decided to do business in California because of this new law. And not only that, other fleets are looking to relocate to other states that are truck friendly like Texas, and some might even leave the industry in total.
- Wow. A lot of ripple effects, I'm sure. Yahoo Finance's Dani Romero. Thanks so much for the breakdown. Appreciate it.