The Teamsters Union applauds the California legislature and the state’s governor for passing and signing Assembly Bill 5 (AB5), legislation that will expand employment protections to thousands of workers who are currently misclassified by their employers as independent contractors.
Teamsters have led the fight to protect workers from misclassification since the deregulation of the trucking industry, and were committed to ensuring the passage of AB5.
The California Supreme Court’s landmark April 2018 decision in Dynamex Operations West, Inc. vs. Superior Court of Los Angeles, referred to as “Dynamex,” simplified the test for determining whether a worker is classified as an employee for minimum wage and overtime protections. AB5 is legislation that codifies Dynamex into state law, and makes it harder for employers to misclassify their employees as independent contractors.
“Misclassification is an attempt to weaken the power of workers, including the thousands of truck drivers in California who deserve a living wage and full rights as employees. With this bill California has taken a strong stand with workers who should earn a living wage and have the protections to which they are entitled,” said Jim Hoffa, Teamsters General President.