AB5 Protest Disrupts Supply Chain at West Coast Ports
We've been made aware that truckers are currently protesting the AB5 requirements signed into law in Sept. 2019 with effective date of Jan. 1st, 2020 due to the Supreme Court's rejection of California Trucking Association's appeal.
The law requires companies that hire independent contractors to reclassify truckers as employees and outlaws lease agreements between owner-operators with motor carriers for exclusive rights to services and use of equipment.
There is a strong pushback to these regulations with truckers currently protesting at the port of Long Beach/Los Angeles. Several terminals are being picketed and physically blocked by trucks and persons. Additionally, there is a caravan of vehicles moving throughout the port causing congestion and delays. We have also been notified that numerous independent contractors have not shown up to various trucking companies in support of the picketers.
Fleischer does not intend to support or critique AB5, or actions by truckers with this message. We are providing this update to inform our clients of expected missed appointments and delays beginning this morning. Prior to today, we have faced significant delays and extended turn-around times at the port, and the current protesting will aggravate issues already affecting the West Coast.
We are watching the situation closely and working closely with truckers to avoid as much delay as possible with your drayage and transportation needs. For more information on the topic, please refer to below recent news reports provided at the end of this posting.
If you would like additional information, please do not hesitate in contacting Fleischer for assistance.
FreightWaves Work Stoppage Article
Freight Waves Supreme Court Reject of Trucking Appeal Article