Landstar System, No. 8 in the CCJ Top 250 and the largest employer of owner-operators in the U.S., appears poised to restructure its California operations in the wake of a new California law that restricts the use of independent contractors by businesses.
According to a letter sent to the company’s more than 10,000 owner-operators, Landstar will be contacting its California-based owner-operators to “discuss some options relating to the potential impact of” A.B. 5. The law takes effect Jan. 1 and effectively bars trucking companies from contracting with owner-operators. Landstar says its contractors will need “to make [their] own informed business decisions with respect to how [they] wish to react to A.B. 5” based on the options Landstar provides.
