The California Trucking Association (CTA) announced its opposition to SB 1402 (Lara- Bell Gardens), which would create joint liability for customers bringing cargo through California ports for the full amount of all wages, expenses, damages and penalties for any workweek they received services from a trucking company in the event a wage claim goes unpaid. Companies whose workers are covered by collective bargaining agreements are exempt.
“In the past, the backers of this bill tried to outright ban small-business, owner-operator truckers from working at the ports,” said CTA’s CEO Shawn Yadon. “Their actions were unanimously rejected by the U.S. Supreme Court. Now they’re back with SB1402, which uses other means to accomplish the same goal.”
Currently in California and around the country, there is a shortage of truck drivers, with many trucking companies offering steady employment. Despite this, there are more than 350,000 independent truck drivers working in the United States because it allows them to set their own schedules, manage their workloads, make more money, and have the freedom and flexibility that comes with working as an independent contractor.
“For the past four years, we have seen the Department of Labor Standards Enforcement use their wage-claim process to reclassify owner-operator drivers without regard to individual facts or applicable law.”
“While SB 1402 highlights the $45 million in claims brought by the California Labor Commissioner against trucking companies, it fails to address the Commisioner’s willful violations of the California Public Records Act and the deprivation of due process during the hearings on those claims. That’s why, in 2016, the CTA filed a lawsuit alleging these hearings constitute a coordinated effort to force thousands of small-business owner-operators into employee-employer relationships.
“Despite the Senator’s good intentions, any legislation which uses this flawed process as its basis should be questioned.”
About the California Trucking Association
The California Trucking Association has been serving the commercial motor carrier industry in California, and the companies that provide products and services to the trucking industry, for 82 years. A critical and vital component of California’s economy, 78 percent of California communities depend solely on trucks to deliver their goods. Our carrier membership ranges from individual owner-operators, to small for-hire fleets, to the largest national and international carriers. Allied members of the California Trucking Association range from businesses involved with truck and trailer sales, parts and service, insurance, legal services and all other businesses that support the trucking industry.
This article was released by the California Trucking Association.