Prime, Inc. and Landstar System, two of the largest contractors of owner-operators in the country, have told their California-based owner-operators they can no longer contract with them unless they move out of state.
The fleets are overhauling their California operations to manage the requirements of the state’s Assembly Bill 5 — a restrictive legislative package that effectively makes it illegal for fleets to contract with owner-operators under their authority. Swift and Knight, part of the Swift-Knight conglomerate, reportedly cut ties with its California owner-operators earlier this year, offering those truckers the option to leave the state or sell their equipment to the fleets and become company drivers.
