Labor nominee a threat to America’s truckers

Julie Su, President Biden’s nominee to lead the U.S Department of Labor, has a history with truckers and independent contractors in California. And that history is the precise reason OOIDA is encouraging members of the U.S. Senate to reject her nomination. We fear the duplication of her failed California-style policies on the federal level would be devastating to small business truckers across America.

As California’s former labor commissioner in 2019, Su supported legislation called Assembly Bill 5 that threatened the independent contractor status of many small business truckers, who benefit from this classification and want to see it preserved.

While Su’s AB5 was primarily aimed at addressing worker misclassification in the gig economy, it created profound disruption and uncertainty in the trucking industry that persists to this day, with many owner-operators exiting the state entirely for fear of losing the status they favor.

Perhaps more concerning than supporting the content of AB5, Su oversaw the law’s disastrous implementation. Under her leadership, California provided woefully inadequate clarity for owner-operators to determine how AB5 would affect their operations. Owner-operators, who represent a large portion of America’s trucking industry, remain confused and fearful about the future of their businesses in California because the state has never provided any concise guidance to clarify compliance or enforcement.

The problems created by Su’s AB5 are not just theoretical. We have already seen real-world examples of the law’s negative impact on small business truckers.

In January 2020, shortly after AB5 went into effect, California-based trucking company, Cal Cartage Express, announced that it would be ceasing operations, citing the new law as a significant factor in its decision.

This closure left over 200 independent contractors without work, a stark reminder of the unnecessary and wholly avoidable devastation AB5 has caused within the trucking community.

And the negative consequences of Su’s AB5 extend beyond just truckers, with evidence the law has damaged the entire supply chain of California. As motor carriers have been forced to adapt or exit the industry, capacity has tightened, leading to increased shipping costs for all consumers. In an economy that is already grappling with historic inflation and supply chain disruptions, the added burden of Su’s AB5 has only served to exacerbate these problems.

Whether due to the lack of preparation or understanding, or simply gross ineptitude, Su’s leadership during the development and implementation of AB5 should immediately disqualify her from higher office. However, our biggest concern is that she will pursue similar policies on the federal level.

If Su were to promote policies like AB5 as U.S. secretary of labor, the harm to our industry would be felt across the country. The livelihood of hundreds of thousands of small business truckers would be instantly thrown into jeopardy, resulting in many of the safest and most experienced truckers exiting the industry entirely.

Our industry and supply chain can’t afford to have the failed policies of California nationalized under Su’s leadership.

Julie Su failed the trucking workforce in California. She should not be given a promotion and the opportunity to impose her failed policies across America. We strongly encourage every senator to oppose her nomination. LL

Todd Spencer has served as president of the Owner-Operator Independent Drivers Association since 2018. He began his career in trucking as an employee driver in 1974.