Regulation

California AB5 Act Uncertainty Looms Over Freight Industry, Sector Braces for Impact

California's AB5 Act took effect on January 1, 2020, redefining independent contractor standards and significantly impacting the freight industry. Although a federal judge has issued a temporary restraining order, the industry still faces risks such as unclear compliance paths and potential fluctuations in capacity and rates. This article outlines the background of the act, industry response strategies, and perspectives from various parties.