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Trade groups ask Newsom to delay enforcement of AB 5

From Transport Topics.

More than 70 trade associations representing wide-ranging supply chain interests have sent a letter to California Gov. Gavin Newsom asking him to issue an executive order to temporarily pause enforcement of the state’s AB 5 contractor law.

The letter, signed July 11 by trade organizations representing interests ranging from trucking and retail to agriculture and business, also asked Newsom, a Democrat, to immediately call labor and industry to the table “to negotiate a path forward to preserve small business trucking in the state of California and prevent further disruptions to the supply chain.”

Last month, the U.S. Supreme Court declined to hear a legal challenge by the California Trucking Association to the controversial AB 5 law, putting into effect a requirement intended to reclassify independent owner-operators as motor carrier employees.

Some of the signers to the letter to Newsom included American Trucking Associations, CTA, Harbor Trucking Association, Truck and Engine Manufacturers Association, National Retail Federation, California Chamber of Commerce, Associated Builders and Contractors, and the Agriculture Transportation Coalition.

A spokeswoman for the CTA declined comment on the letter.

“Independent truckers service all parts of California’s economy, including but not limited to, providing seasonal capacity to support agricultural harvests, specialized construction equipment and aggregate hauling, transportation of refrigerated food commodities, port and intermodal rail delivery, home deliveries and all points in between,” according to the letter.

See the complete article online at Transport Topics.