to leave calif. to contin ue as contractors landstar, pr...
TRANSCRIPT
11/22/2019 Two trucking companies discuss California owner-operators
https://www.ccjdigital.com/landstar-prime-among-fleets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/ 1/4
James Jaillet (https://www.ccjdigital.com/author/jjaillet/) | @trucknewsJJ (http://www.twitter.com/@trucknewsJJ) | November 21, 2019
BUSINESS (HTTPS://WWW.CCJDIGITAL.COM/TOPIC-TAG/BUSINESS/)
Landstar, Prime among fleets telling owner-operators they’ll needto leave Calif. to continue as contractors
Prime, Inc. and Landstar System, two of the largest contractors of owner-operators in the country, have told their California-based owner-operators they can no longer contract with them unless they move out of state.
The �eets are overhauling their California operations to manage the requirements of the state’s Assembly Bill 5 — a restrictive legislativepackage that e�ectively makes it illegal for �eets to contract with owner-operators under their authority. Swift and Knight, part of the Swift-Knight conglomerate, reportedly cut ties with its California owner-operators (https://www.ccjdigital.com/swift-reportedly-the-latest-carriers-to-shy-away-from-owner-operator-leases-in-california/) earlier this year, o�ering those truckers the option to leave the state or sell theirequipment to the �eets and become company drivers.
Prime which contracts with nearly 6,000 owner-operators, is o�ering its California-based owner-operators the option to leave California ortransition to company driver if they wish to continue operating with the �eet after the state’s sweeping new labor law(https://www.ccjdigital.com/californias-contractor-law-has-steep-implications-for-trucking-heres-what-your-�eet-needs-to-know/) takes e�ectJan. 1.
The �eet, No. 13 in the CCJ Top 250 (http://Ccjtop250.com), said it will provide owner-operators with relocation packages if they wish to moveand remain owner-operators. A Prime spokesperson did not elaborate on how many operators would be a�ected.
(https://www.ccjdigital.com/californias-contractor-law-has-steep-implications-for-trucking-heres-what-your-�eet-needs-to-know/?utm_medium=single_article&utm_campaign=site_click&utm_source=in_story_promotion)California’s contractor law has steep implications for trucking: Here’s what your fleet needs to know
(http://www.linkedin.com/shareArticle?url=https%3A%2F%2Fwww.www.ccjdigital.com%2Flandstar-prime-among-�eets-telling-owner-operators-theyll-need-
to-leave-calif-to-
continue-as-
contractors%2F&title=Landstar%2C%20Prime%20among%20�eets%20telling%20owner-operators%20they%E2%80%99ll%20need%20to%20leave%20Calif.%20to%20continue%20as%20contractors&summary=Prime%2C%20Inc.%20and%operators%20in%20the%20country%2C%20have%20told%20their%20California-based%20owner-operators%20they%20can%20no%20longer%20contract%20with%20them%20unless%20they%20move%20out%20of%20state.%20&source=https%
(mailto:?subject=Landstar%2C%20Prime%20among%20�eets%20telling%20owner-operators%20they%E2%80%99ll%20need%20to%20leave%20Calif.%20to%20continue%20as%20contractors&body=Ienjoyedreading
thisarticlefrom
CommercialCarrierJournal:www.ccjdigital.com%2Flandstar-prime-among-�eets-telling-owner-operators-theyll-need-
to-leave-calif-to-
continue-as-
contractors%2F)
11/22/2019 Two trucking companies discuss California owner-operators
https://www.ccjdigital.com/landstar-prime-among-fleets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/ 2/4
California lawmakers late last week passed a landmark piece of legislation that aims to overhaul the independent contractorlandscape in the state. Here's a primer ...
(https://www.ccjdigital.com/californias-contractor-law-has-steep-implications-for-trucking-heres-what-your-�eet-needs-to-know/?utm_medium=single_article&utm_campaign=site_click&utm_source=in_story_promotion)
Landstar, No. 8 in the CCJ Top 250 and the country’s largest owner-operator �eet, con�rmed to CCJ last week(https://www.ccjdigital.com/landstar-moves-to-restructure-calif-operations-in-wake-of-new-law/) that it is calling its California-based owner-operators to discuss options, too, but the �eet would not elaborate on available options.
Landstar owner-operators familiar with the calls have said the choice is simple: Leave California or “they’re done at Landstar,” said one of thecompany’s owner-operators, who wished to speak anonymously.
Landstar declined to comment on that interpretation or whether drivers would be o�ered relocation packages.
Owner-operator Ivan Mikhov, based in Sacramento, is one such operator facing A.B. 5’s existential threat. He has four brothers also leased asindividual one-truck businesses to the company, and all have been told that, in order keep their contracts into the new year, when the newcontractor law goes into e�ect, they must either commit to only hauling loads that originate outside the state, or else relocate to anotherstate and update their CDL from their current California licensing.
“We’re trying to decide” exactly what to do, Mikhov says. “We’ll probably move.”
–Todd Dills contributed to this report.
(https://www.ccjdigital.com/owner-operators-backed-by-calif-trucking-association-�le-suit-challenging-ic-test/?utm_medium=single_article&utm_campaign=site_click&utm_source=in_story_promotion)Owner-operators, backed by Calif. Trucking Association, file suit challenging IC test
The California Trucking Association and two independent owner-operators based in the state have �led a lawsuit that seeks toderail the state's test for determining ...
(https://www.ccjdigital.com/owner-operators-backed-by-calif-trucking-association-�le-suit-challenging-ic-test/?utm_medium=single_article&utm_campaign=site_click&utm_source=in_story_promotion)
(https://www.ccjdigital.com/partner-solutions-article/freightliner/a-truckload-of-safety-technology/)
Safety is number one at Freightliner for drivers and everyone on the road. Check out our latest safetyinnovations. (https://www.ccjdigital.com/partner-solutions-article/freightliner/a-truckload-of-safety-technology/)
AD
(HTTPS://WWW.CCJDIGITAL.COM/PARTNER-SOLUTIONS/FREIGHTLINER/)PRESENTED BY: FREIGHTLINER (HTTPS: //WWW.CCJDIGITAL.COM/PARTNER-SOLUTIONS/FREIGHTLINER/)
1 Comment
COMMENTS
LOGIN WITH SOCIAL MEDIA NETWORKS OR EMAIL:
POST COMMENT
A Truckload of Safety Technology (https://www.ccjdigital.com/partner-solutions-article/freightliner/a-truckload-of-safety-technology/)
11/22/2019 Two trucking companies discuss California owner-operators
https://www.ccjdigital.com/landstar-prime-among-fleets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/ 3/4
Reply (/epoch-api?replytocom=401356#respond)
Now’s the Time to get out of CaliforniaThe cost of fuel is ridiculous property tax the cost of living . it’s the worst state in the United States to betransporting goods. If the �res don’t a�ect your life the earthquake probably will it’s no longer the GoldenState and never will be it’s the nickel-and-dime state if you own property in California sell out move to one ofthe neighboring states and buy a ranch with the money that you would have left over you could have horsescattle or even bring the rest of your familyand with all the extra money that would be in your pockets fromworking you would have plenty of money to visit a suggestion fuel up before you enter the state
Follow me: @trucknewsJJ (http://www.twitter.com/@trucknewsJJ)
James Jaillet on Google Plus (https://plus.google.com/115514845070196397931?rel=author)
James Jaillet (https://www.ccjdigital.com/author/jjaillet/)
James Jaillet is Randall-Reilly's executive editor of trucking, focusing on coverage of business and regulatory updates and trucking industrytrends for the Commercial Carrier Journal and Overdrive. Reach him at [email protected] (mailto:[email protected]).
Most Popular
(https://www.ccjdigital.com/landstar-prime-among-�eets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/)
Landstar, Prime among fleets telling owner-operators they’ll need to leave Calif. to continue as contractors(https://www.ccjdigital.com/landstar-prime-among-fleets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/?utm_medium=ccj&utm_campaign=site_click&utm_source=most_popular_article_footer)
(https://www.ccjdigital.com/2020-trucking-industry-forecast/)
2020 projected to be ‘a tough year’ for trucking (https://www.ccjdigital.com/2020-trucking-industry-forecast/?utm_medium=ccj&utm_campaign=site_click&utm_source=most_popular_article_footer)
Brent D Henderson
November 22, 2019 at 7:48 am (https://www.ccjdigital.com/landstar-prime-among-�eets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/comment-page-1/#comment-401356)
11/22/2019 Two trucking companies discuss California owner-operators
https://www.ccjdigital.com/landstar-prime-among-fleets-telling-owner-operators-theyll-need-to-leave-calif-to-continue-as-contractors/ 4/4
Symposiums (https://www.ccjsymposium.com/) Innovators (http://www.ccjdigital.com/eventsprograms/ccj-innovators/)
Five Flashiest Fleets (http://www.ccjdigital.com/5�)
CCJ Top 250 (https://www.ccjdigital.com/ccj-top-250/) CCU (https://www.ccjdigital.com/education/ccu/)
The Air Brake Book (https://www.ccjdigital.com/air-brake-book/)
Subscribe to Magazine (https://rrp.dragonforms.com/RRP_CMnew?pk=ENEWS19) Newsletters (https://www.ccjdigital.com/news/subscribe-to-newsletters/)
Advertise (https://www.randallreilly.com/�eet-management/commercial-carrier-journal-media-kit/) About Us (https://www.ccjdigital.com/contact-us/)
Digital Magazine (https://dmtmag.uber�ip.com/t/198611-ccj-magazine) White Papers (https://www.ccjdigital.com/white-papers/)
Partner Solutions (https://www.ccjdigital.com/partner-solutions/)
CCJ (Commercial Carrier Journal) Commercial Carrier Journal - Fleet Management Magazine
CCJ Magazine covers �eet management topics ranging from technology, freight, logistics, equipment, and more.
© CCJ (Commercial Carrier Journal) 2019
Sitemap (/about-us/sitemap) | Privacy Policy (http://www.randallreilly.com/about-us/randall-reilly-privacy-policy) | Terms and Conditions (http://www.randallreilly.com/about-us/randall-reilly-terms-and-conditions)
(http://www.randallreilly.com)
(https://www.ccjdigital.com/ccj-symposium-�eets-can-expect-insurance-renewals-to-rise-25/)
With court-ordered payouts climbing, fleets can expect insurance renewals to rise 25% (https://www.ccjdigital.com/ccj-symposium-fleets-can-expect-insurance-renewals-to-rise-25/?utm_medium=ccj&utm_campaign=site_click&utm_source=most_popular_article_footer)