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In the news: AB-5, California’s Worker Classification Law, Stands as Supreme Court Decides NOT to hear case

The U.S. Supreme Court announced on June 30 it won’t review whether AB-5, a California state worker classification law, applies to truck drivers.

This law – which relates to the classification of workers either as employees or independent contractors – has been on the books in California for two years, but federal courts have blocked the law from applying to truck drivers due to ongoing litigation and appeals.   


But now, with the Supreme Court’s June 30 decision, the injunction will be lifted making compliance with AB-5 a reality for trucking companies in California. 

ABC test infographic

AB-5:  In practical terms what does the supreme court decision mean for shippers?

In California: 

  • In the coming months, we expect to see Owner Operator truck drivers do one of three things: (1) convert to employee drivers; (2) go it alone by obtaining their own operating authority and insurance, and then managing their loads across multiple shippers/brokers (as opposed to leasing on with a single carrier); or (3) exit the California market. 
  • As it relates to Schneider, we have already positioned our California services in a way that allows us to meet the commitments to you, our valued customer. Even though AB-5 is now applicable to trucking companies, we will see little to no impact to Schneider operations and our ability to service our customers.

In other states: 

  • This does not change the Owner Operator model in states other than California. 
  • Owner Operators are, and will continue to be, an important source of capacity for the industry.
  • As it relates to Schneider, we are proud to do business with Owner Operators in states other than California.

Update for port shippers: West coast port labor union contracts expired on July 1, 2022, as negotiations continue

The current contract, which covers the International Longshore and Warehouse Union’s more than 22,000 workers at the 29 ports dotting the Pacific coast of the U.S., expired July 1. 


Both organizations expected the contract to expire and are actively working to reach an agreement. While there has been no contract extension, they are assuring shippers that cargo will keep moving. 

Image of LA port.

Various industry associations—including the National Retail Federation, American Chemistry Council, California Trucking Association, and the National Industrial Transportation League, and many others—recently penned a letter to President Biden, calling on the White House to reach a new agreement without any disruption to port operations, specifically pointing out the upcoming Peak Season.

Schneider's advice for Port shippers: Now is the time to put contingency and port diversification plans in place.

How?

  • Shifting/multi-port and distribution strategies to reduce your risk.
  • Maintain strategic business relationships with providers who can help your supply chain stay nimble through the utilization of new strategies and ideas -- “don’t fear failure.”
  • Be willing to try new strategies and take calculated risks.  shifting/multi-port and distribution strategies to reduce your risk.
  • Are you looking at ways to optimize your port strategy? Utilizing pop up DC’s? Bypassing DC/s? Utilizing Schneider Capacity Stacking℠?

Schneider highlights progress on key environmental and social initiatives in second annual Corporate Responsibility Report

Picture of a female truck driver in front of a truck.

In the news: COVID-19 cases and hospitalizations rising throughout the U.S. and China due to the emerging dominance of the BA.5 variant

In the U.S., the number of known cases each day remains relatively stable, but rising positivity rates are showing an emerging dominance of the BA.5 variant in areas around the country that are experiencing outbreaks. 


The known number of cases is expected to be underreported, but on average there are more than 33,000 people in U.S. hospitals with coronavirus on a given day – the highest national average since early March. 

In China, multiple cities are adopting fresh COVID-19 curbs to rein in new infections, being as cautious as possible to avoid more major disruptions, as experienced earlier in the year. 

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Federal Motor Carrier Safety Administration National Emergency Declaration

The Emergency Declaration was issued following the declaration of a national emergency by the President in response to the Coronavirus Disease 2019 (COVID-19). Regulatory relief is provided for commercial motor vehicle operations providing direct assistance in support of emergency relief efforts related to COVID-19.

The Emergency Declaration has been extended multiple times. The June 1, 2022 update shall remain in effect until August 31, 2022, unless modified or terminated sooner by FMCSA.

The Emergency Declaration is limited to transportation of:

  1. Livestock and livestock feed.
  2. Medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19.
  3. Vaccines, constituent products, and medical supplies and equipment including ancillary supplies/kits for the administration of vaccines, related to the prevention of COVID-19.
  4. Supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap and disinfectants.
  5. Food, paper products and other groceries for emergency restocking of distribution centers or stores.

Direct assistance does not include routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief added to obtain the benefits of this emergency declaration.

See the full Emergency Declaration, Restrictions, and Limitations on the FMCSA website.

Schneider is committed to following the FMCSA Emergency Declaration while maintaining our #1 Core Value of safety among our drivers and associates.

COVID-19 – Actions to maintain safety among drivers and customers

We continue to closely monitor information related to the COVID-19 outbreak and – as always – our priority is to protect the health and safety of our associates, our drivers, our customers, and the general public. Our crisis management team is continually monitoring the situation and is taking steps to ensure the wellness and safety of our associates.

Recognizing that our drivers are the backbone of our business, we are in regular communication through our driver support teams to ensure that they are well informed as to the environment they are operating in. Their safety and wellness are a top priority.

Your business is very important to us and we are happy to answer more questions related to specific worksites or regions should you have them.

For the latest information on COVID-19, please visit the Centers for Disease Control and Prevention’s website.

Our associates and transportation experts are available to help with supply chain strategy and shipping needs to respond to the pandemic. You can count on Schneider to provide your business with the same exceptional service and timely support we’ve provided shippers for 85+ years.

More valuable supply chain and logistics news

Published May 2022

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