Last month, the Department of Labor proposed a change to the way it determines the classification of independent contractors. If it eventually becomes law, the rule change would have a lasting effect on the gig economy and gig workers. Kashyap Deorah, CEO of HyperTrack, talks about the balancing act in front of the DOL.
While trucker protests are no longer blocking the flow of goods at the busy Port of Oakland, port officials are still hoping a California district court judge will take action to prevent future efforts to create a logjam there as retailers gear up for the 2022 peak holiday season.
FedEx is suspending Sunday delivery for its Ground network in some lower-density markets starting Aug. 21, citing a focus on “improving efficiency and reducing costs,” the move coming amid calls from contractors for relief from high costs, including elimination of Sunday service.
Truck drivers blocked the Port of Oakland Monday, protesting California’s AB5 law that requires contractors to be reclassified as employees. The law affects an estimated 70,000 independent truckers, many of whom fear losing their livelihood, according to various media reports. There were similar protests last week in LA/Long Beach.
After the U.S. Supreme Court last week refused to hear a case that would have reopened the issue of using independent contractors in California, shippers are bracing for the supply chain impact as a nagging truck driver shortage becomes even more acute.
The California Trucking Association (CTA) is petitioning the U.S. Supreme Court, asking it to ignore the recommendation of the California attorney general and instead review an appellate court decision upholding the state’s AB5 law, which calls for recognition of contract drivers as employees.
Frontline workers have been the focus for the past two years. This term conjures up a variety of images, and until now truck drivers were probably not one of the first that came to mind. Drivers have been overlooked and overworked and in high demand throughout this pandemic – among the unsung heroes now getting their due.
A state court judge in California ruled in favor of truckers seeking an exemption from AB5, which broadly restricted use of contractors by requiring reclassification as employees. On Dec. 31, a federal judge issued a similar ruling temporarily exempting truck drivers from the Jan. 1 implementation of AB5; it was extended on Jan. 13.
A federal court judge issued a restraining order on New Year’s Eve that temporarily exempts 70,000 truck drivers from the Jan. 1 implementation of California’s new gig worker law AB5, after a legal challenge from a trucking group. The group contends AB5 was preempted by a 1994 federal statute; a hearing is scheduled for Jan. 13.
Joining the likes of Uber, Postmates and FedEx, Amazon is facing a lawsuit from contract delivery drivers who claim they should be classified as employees