AB5: The Event That Will Change the Face of Trucking (As We Know It!)

Hey there Big Strapper. Big news in trucking! AB5 becomes law. Give us the down and dirty of how YOU feel about AB5. Will it affect you directly or not? Love to hear from you!

I heard a smart trucker once say regarding lease operators " you're a company driver making THEIR truck payment for THEM."

This guy is the only man that made this makes sense. Im not so mad now that it makes sense.

As a former Schneider lease operator, I'd be glad if this decision shakes up their ability to lease trucks. Driving for them was the worst decision I believe I've made in my career. Too much drama and too many issues dealing with SFI when it came to maintenance. As much as they wanted me to recommend other drivers to them, there's absolutely NO way I could ever consider telling someone to go through the same thing I did.

I remember when I worked in construction, & was considered an independent contractor. I always felt the company I worked for was taking all of the benefits and left all the liability to me. No vacation/sick time, no 401k, 1099’s, etc. on top of that, had to pay self employment tax from the small checks I was getting.

As a company driver with no desire to EVER own a truck, this means little to me. It’s great for certain people, but I’d rather hear about drivers getting paid for ALL their time plus overtime. No more exemptions that turn us into slaves.

I believe it was several years ago that you said, "run, don't walk, away from a lease, " then proceeded to explain why.

Thank you brother, I'm a 2nd generation trucker and gave up my authority last year after 12 years being independent in California. Currently a Costco fleet driver. I greatly appreciate what you do for our community.

My hope is that all drivers will get a better way with better pay. Stay strong drivers. Folks out here like me (that are not or no longer drivers) that appreciate your service. Keep on keep’in on ;)

I was an OO from 78 through 93. I did well for most of that period. Owned several Petes bought my house... by 93... I was refusing loads because they didnt pay enough. Ultimately leaving my truck sit 3 months while I started a fabricating co with a friend. Making $1600/ month payment on a parked truck. I think these lease purchase agreements came in around 1990. I remember hearing about this and thinking what a screwing it was. Having been around long enough to know the business I thought of it as a scam for new guys that would end in 100% turnover. I ended up back behind the wheel running low bed as a co. driver for another 10 years. A good job. But got out again in 2007. Never looked back. At one point nearly everyone I knew was in trucking. When I first read of this AB5 it was an article from ATA. I knew they would be full of it. This is an honest accurate description. Ive always found Smart to be a solid source that I agree with. I would add 1 thing. It might be a bump for trucking short term. Bad for some...BUT.... I believe these lease purchase scams destroyed much of the OO fleet as it existed through the 80s. With real independent drivers with proud beautiful trucks. Making a solid middle class income doing what we loved... I hope some if you guys are still out there doing that.. but what I see traveling Rt 78 in Jersey here is junky trucks driven by amateurs who dont know enough to move left when theres a guy on the shoulder... and dont know enough not to literally ride the left lane like a 4 wheeler. I feel for you real drivers. Your truly the last of a breed. At 66 Im finally just letting my commercial license lapse. But I still identify as a driver...

I'm a second generation trucker Dad's been there done that 60 yrs He's been a true independent own authority since 1980 Had up to 3 trucks at once. I've looked at leases for time to time I NEVER could make the numbers work. Remember HOUSE/Family comes first Then Truck Then you if anything is left Truck is FUEL maintenance/permits and TAXES. So thanks to my Dad for showing me the "backside" of this industry.

Lots of drivers complained about the new law but in reality it is a good thing to happen. Most of these mega carriers have been preying on new drivers who have no experience in the business and buy a dream just to fail and enrich their predators. It is infuriating that most of these contracts were the famous never, never lease programs where carriers would stop giving drivers loads to haul when close to paying off their trucks just to force renegotiating a new scam contract.

As a retired trucker this will be very interesting to see what will happen within the next six months...

Thank you. Whenever I’ve heard/read about this, all I’ve ever gathered based on the information provided (which wasn’t much) was that this needs to be overturned and that it’s terrible for the industry and thousands will be out of jobs. But once it’s been properly explained and the history/reasoning behind it has been cited, it’s easy to see the truth in it. Again, I thank you for the information you provide

I did a lease purchase with Schneider in 2015, got a new Freightliner. I paid the truck off in a little less than 5 years and never had a problem with them. I'm on their Choice Program where I choose my loads from a load board, go where I want and when I want. If you are going to lease a truck from a carrier, you need to be able to choose your loads, if they are dispatching you they are controlling your money. I've been driving otr for the past 15 years, the last 7 as a independent contractor and I'm happy with what I got.

Nice and clear explanation. Best I've seen so far. God bless this chanel, your trucking tips and keep rubber side down everyone.

Has anyone thought about the long term in regards to how CA enforces this new AB5 law? Right now, an out of state carrier can operate in CA, regardless of the drivers pay status. But, I can see the day coming, when CA figures out they can go after out of state carriers for operating illegally in their state under AB5. It would only take a trip to the State IFTA office to gather the names of the carriers that have done business in their state. They gather that info, send out a questionnaire and it is all over, they start legally going after carriers and fining them for not being in compliance with AB5. And even worse, I could see them going for the operating authority of the said carriers that do not pass their ABC test until all fines are paid in full, or other financial arrangements are made to pay off these "debts". If I was a carrier, one that cannot pass their ABC test of AB5, I would cease all operations with CA immediately. I am sure there are carriers thinking this right now, or at least I hope there are.

That's great to hear Dave, now the trick is to get companies to pay a driver enough money to compensate for inflation. The transportation industry runs commerce, and the operators should be paid there value.

Very good perspective on how this came about. I’m glad they’re not allowed to do these ripoff programs anymore. I agree that it will be better in the long run.

Hello sir, you did a better job than FREIGHT WAVES at explaining the situation…….I have been watching your videos for many years now and I have learned a lot over the years from you. Thank you very much for your educational content you produce.