What Are the New Trucking Laws in California?

You must follow trucking laws to maintain your USDOT number registration. However, the laws may differ by state, and depending on the location and operations related to your trucking company, you may need to follow them accordingly. With recent changes to California’s transportation and employment laws, business owners should double-check that they operate within legal specifications.

Here, we’ll discuss some of the new trucking laws in California and how they may affect your business. 

2023 CARB Regulations

In March 2020, as COVID-19’s influence increased, the United States saw the importance of Californian ports for the national supply chain. With over 30% of all imports and exports traveling through California, trucks from across the country traveled to and through the state. However, truck-based transportation also increased carbon emissions, affecting air quality.

To reduce emissions, the California Air Resources Board (CARB) started regulations on January 1, 2023, with new trucking requirements. Any businesses operating freight trucks in California, whether based there or for delivery purposes, must follow the state’s regulations. The main changes to pay attention to pertain to drayage trucks over 26,000 lbs. and any trucks going to the Port of Long Beach:

1. Drayage trucks 26,000 lbs. and up must have an engine from 2010 or later.
2. Drayage trucks 26,000 lbs. and up going to Long Beach Port facilities must have an engine from 2014 or later.
3. Non-gasoline vehicles over 14,000 lbs. must pass California’s periodic Clean Truck Check evaluations.

These new trucking laws in California have put a few small companies in a bind due to the funding needed to replace the engines. However, the state aims to meet decreased emissions standards for public good and citizen health.

AB5 Law of 2019

The California Supreme Court passed AB5 in September 2019 as Uber and Lyft drivers protested footing exceptional management bills while under company regulations. This bill aims to differentiate between independent contractors and employees more clearly. 

Some differences between the two include compensation amounts and benefits. Employees may not receive their entire paycheck because the company pays their income taxes for them. They can also earn work benefits, like vacation days, sick leave, and disability benefits. 

Independent contractors don’t receive those. Moreover, they must pay their income taxes on their own, receiving a 1099 instead of a W2. Companies falsely reporting employees as independent contractors can face hefty fines.

AB5 tries to simplify the differentiation with three keynotes, according to which a person is likely an independent contractor if:

1. They control and direct their performance rather than the hiring entity.
2. They do business aside from the hiring entity’s typical duties.
3. They have their own separate trade and business functions.

Making the Points Clear

In Point A, a worker should have more control over their business operations, including setting their schedule and buying their own equipment. The hiring entity can get a pass if the worker declines an offered employment opportunity. According to the new trucking laws in California, many companies fail to prove this point.

In Point B, if the hiring entity works in product transportation, they put themselves at risk by hiring an independent truck driver. Because the truck driver would not be doing business aside from the hiring entity’s typical duties, they could qualify as an employee. Instead, a product transportation company could hire an independent plumbing contractor to fix bathrooms in their corporate buildings without worry.

In Point C, truckers would need to advertise their business, have an LLC in their own name, or other related business functions. These aspects would prove that the contractor, while possibly in the same industry as the hiring party, controls their own business. Writing a contract with a worker that labels them as an independent contractor does not unilaterally satisfy this point.

2022 Senate Bill 1402

In August 2022, after legal holdups regarding AB5 faded, the California Senate introduced Bill 1402. This bill created a public list to display the names of trucking carriers failing to adhere to AB5 requirements. 

If a court found the company guilty of a misclassification-related judgment, they would add the name of said company to the public list. Then, the courts could hold shippers doing business with listed carriers liable for related worker damages and wages. 

Some lawmakers would consider SB 1402 as punishment for businesses that have violated AB5. The best course of action would be to review the list and potentially avoid working with those carriers in the future. Also, you may feel safer working with carriers that hire their workers as employees.

Need Help Understanding New Trucking Laws?

FMCA Filings helps carriers and shippers across the United States, from meeting your DOT requirements for trucking to understanding new trucking laws in California and other states. Your business doesn’t need to go on hold because of industry jargon misunderstandings. Instead, get detailed and efficient service by contacting our Live Agents or visiting our contact page today.