I hope it puts enough OO's and carriers out that it causes catastrophic shortages and shutdowns throughout the state, devastating in scope, and crushes the morons on the left who do this stupid stuff. And that those who remain able to operate there concentrate all their work and support to those on the right who've been against this stuff all along. It won't happen, but it's what the left deserves and I hope they receive their Armageddon soon.
California is a strange state in a number of ways, especially when it comes to government regulation. Diane and I saw it when we were expediters. We see it in the gym business we're in now as we hear about the challenges our California counterparts face. I don't know why anyone would want to do business in California, but obviously, millions do.
Regarding your Armageddon hope, California will continue to have controversial developments, many of their own making, but they're feeling pretty good financially right now. They're sitting on a $97 billion state budget surplus, their largest surplus in history. A chunk of that is soon to be refunded to the taxpayers.
We could tell them they're stupid for passing the AB5 law that hugely disrupts independent truckers, but CA leaders would not be inclined to listen or care. I expect a bunch of owner/operators will move out of the state.
As far as the impact on expediting goes, I'm not sure how it will shake out. California was a major market for Diane and me as we drove a team CR-Unit. We got a LOT of high-paying, cross-country loads that originated in or delivered to California. It is not a market we would have happily given up. I see the rules allow independent owner-operators to deliver freight into the state but not haul freight out.
I'm wondering if some companies might get creative and create employment agencies where a driver will hire on as an employee with that company long enough to haul a load out beyond the state line, and that employee status then automatically falls to the ground and the driver becomes an owner/operator for the duration of the trip. Maybe a class of employee brokers will rise to help move the freight. The employee broker hires you as an employee to pick up the load, and you automatically resign when you cross the line.
Yes, this sounds crazy ... but it makes perfect sense when you realize it's California logic you're dealing with. Hi, my name is Phil. I'm with the FedEx Employment Agency and I'm here to help. Just fill out this employee paperwork so we can hire you to pick up the load. We'll pay you to haul it to the border. At the border, we have a special relationship with FedEx Custom Critical such that the load will be brokered to them and they will contract with you to take it from there. There will of course be an agency fee for this arrangement, charged to the shipper.
And the agency keeps a slice. But you'll be a legal employee, with health care benefits and a retirement plan (for the 4 hours it takes you to get out of the state and off our books).