⚖️ AB 5 Survives Again: What This Means for Owner-Operators in Trucking

by TRUCKERS VA
(UNITED STATES)

💥 Intro: California Just Doubled Down

The gavel came down and it’s official: AB 5 is here to stay.

A judge has denied the latest attempt to overturn California’s controversial independent contractor law, locking it in place — and that means the pressure just ramped up for owner-operators across the state.

For those outside California thinking, “That don’t affect me” — don’t get too comfortable. This law is shaping the national conversation about independent trucking, and what plays out here could end up in your state next.

So what’s really going on? Who’s getting squeezed? And how should you play this as a driver, fleet owner, or someone lookin’ to break out on their own?

Let’s break it all down.

🔎 What AB 5 Does (And Why It Matters)

• Kills the ‘Lease-On Model’ – AB 5 basically says if a driver does work that’s “core to the business” of the company hiring them — like, uh, hauling freight — they must be classified as an employee, not a contractor.

• Big carriers can't just lease you on – The old model where you bring your truck and lease on to a carrier? Illegal under AB 5, unless they make you a W-2 employee.

• Owner-ops lose freedom – You want to choose your loads, your schedule, and your route? That gets harder when you're forced into a company-driver role.

• Huge fines for misclassification – Carriers caught violating AB 5 face massive penalties, which is why so many are cutting ties with leased-on drivers.

🚛 Who’s Feeling the Heat?

• California-based owner-operators – You’re already feeling it. Many small fleet owners are closing shop or moving out of state. Others are trying to reclassify as their own authority (which costs $$ and adds red tape).

• New truckers with dreams – If you just got your CDL and were planning to buy your own rig and start independent — that road just got a lot bumpier.

• Carriers – Especially those with “lease-on” programs. They’ve had to restructure everything. Some cut California operations altogether.

• Port drivers – Many drayage drivers operated as contractors. Now ports are seeing worker shortages and supply delays from the confusion and exodus.

💬 The “Why” Behind the Law

Supporters of AB 5 say it protects workers from being exploited as gig labor — no benefits, no job security, no protections. They say trucking companies abused the 1099 model to dodge taxes and responsibilities.

Critics (that’s most of the trucking world) say it’s a bureaucratic bulldozer that hurts small businesses, slams the door on entrepreneurship, and makes it harder for truckers to be their own boss.

And let’s be real — the mega fleets love it, because now they get to soak up more control, fewer competitors, and a driver pool with fewer options.

⚙️ How the Industry is Reacting

• Fleeing California – A lot of owner-ops and small carriers are relocating to Nevada, Arizona, Texas — anywhere but Cali.

• Forming LLCs and S Corps – Some drivers are restructuring themselves as full-fledged businesses to try and pass the "business-to-business" exemption, but it’s murky legal ground.

• Getting Authority – Many drivers are saying, “Screw it, I’ll just run under my own DOT number.” But that comes with big startup costs, insurance hikes, and compliance challenges.

• Legal appeals are ongoing – Trucking organizations like the California Trucking Association (CTA) still hope to get AB 5 revisited, but for now? It’s law.

🧠 What Should YOU Do?

1. Know your status – If you’re working under a lease agreement or as a 1099 in California, it’s time to get legal advice or start prepping a pivot.

2. Consider moving or changing your setup – Harsh, but real. Some drivers are relocating their business address to compliant states and running interstate.

3. Start planning long-term – Don’t wait for another court decision to plan your future. This law might spread, and the big carriers ain’t gonna help you out.

4. Build a backup income – The dream of independence might look different now. But you can still build freedom with income outside the truck.

🛑 Final Word: Adapt or Get Squeezed

AB 5 isn’t just a law — it’s a warning. The industry is changing fast, and the ability to call your own shots is getting more expensive and more regulated.

But don’t give up your dream of independence — just be smart about how you chase it.

Stay informed. Build multiple income streams. And never depend on one law, one carrier, or one route to define your success.

📢 Call to Action

Want to stay independent no matter what the law says?
Learn how to build online income and start your transition from behind the wheel to behind the business.

👉 OffDutyMoney.com
— Real tools, real strategies, and real income ideas for truckers who want freedom beyond freight.

And for life advice, trucking resources, and how to play the long game:
👉 LifeAsATrucker.com