A new California law is touted to protect employee truck drivers.
Gov. Gavin Newsom has signed into law a bill to require trucking companies and truck drivers to provide specific information to the Port of Long Beach and the Port of Los Angeles.
Sen. Laura Richardson, D-San Pedro, said the new law represents a critical step to ensure the state’s trucking industry operates in a “fair, legal and transparent manner.”
Responsibility of trucking companies
The new law mandates ports to provide information collected from trucking companies and truck drivers to the California Labor Commission.
Trucking companies will be responsible for providing information on employee truck drivers. Information must include a worker’s compensation insurance policy that covers all employee truck drivers. The number of employee truck drivers covered by the insurance policy must also be submitted.
Companies must provide information to the state on an annual basis.
Trucking companies will be required to update the port within 30 days of a change to its operation that results in more than 50% of its employees being replaced by independent truck drivers.
Failure to comply could result in a $5,000 fine. False or misleading information submitted to the state could result in a $20,000 fine.
Responsibility of truck drivers
Truck drivers who are not employees will be required to provide to a port on an annual basis information that includes proof of insurance, motor carrier number, federal Department of Transportation number, California motor carrier permit and DOT registration.
Responsibility of ports
The ports of Los Angeles and Long Beach must disclose information provided by a trucking company on its website.
Ports must also provide to the Labor Commission quarterly information regarding each truck that entered the port during the prior month. Submitted information must include the name of the port and gate used for entry, the date and time of entry, the name of the truck owner and the name insured on the insurance policy that covered the truck.
The new rules will take effect Jan. 1, 2027.
Support and opposition
Richardson said change is needed to address a system that exploits truck drivers by misclassifying them as independent contractors.
“This illegal practice robs them of basic workplace protections and puts the burden of operating costs on their shoulders, all while companies profit,” Richardson explained in a bill analysis.
She added that by requiring the collection of key information about trucking company operations, “we can identify bad actors, ensure labor laws are upheld and protect compliant businesses that are being undercut by those breaking the rules.”
The Western States Trucking Association opposed the legislation.
“Instead of creating further obstacles to cost-effective goods movement, the Legislature should focus its efforts on crafting a workable trucking carveout to the ABC test, which actually facilitates the use of legitimate owner-operators instead of abolishing them,” the group wrote. LL
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