AB5 and Container Shipping
The port drayage industry depends heavily on owner-operators driving as independent contractors to licensed motor carriers (LMCs). There are many employee-driven fleets and LMCs with both, but owner-operators make up the bulk of US drayage drivers. California State Assembly Bill 5 (AB5), passed in September 2019 and due to be enforced in 2020, drastically tightens the definition of an independent contractor. To be considered an independent contractor, a California driver must