AB5 isn’t going anywhere. Now what?

Although AB5 was signed into law in 2019, it resurfaced again when the U.S. Supreme Court declined to take the California Trucking Association’s challenge to California’s AB5 independent contractor status test. Which means AB5 still stands, even in transportation.    

This is not ideal for drivers who want to be independent and for companies that like the service they receive from independent contractors.   

However, this is not the end of independent contractor work as we know it. Our host, Nick Hancock, chats with Openforce General Counsel Doug Grawe to learn more about what AB5 is and what it means for transportation companies that utilize independent contractors in California and nationally.

The Gig Academy host

Nick Hancock, Openforce Gig Academy Podcast Host and Customer Success Manager of Key Accounts
Nick monitors all areas that pertain to and affect the gig economy and IC model to best advise and meet the needs of Openforce’s clientele. Prior to working at Openforce, Nick worked in the dental manufacturing industry and has a background in insurance as a producer.

Nick has a Bachelor’s degree in Interdisciplinary Studies of Humanities from Northern Arizona University. Nick resides in Phoenix, Arizona where he and his wife recently welcomed their firstborn daughter in October 2021.

About this episode’s guest

Doug Grawe, General Counsel at Openforce
For Doug, law school essentially changed the way he analyzed problems which has proven to be an invaluable skill for corporate transportation companies over the last 17 years. A quick study, Doug grew most of his career with Dart Transit Company, one of the top-performing and established trucking companies in America. Dart is known for building one of the best owner-operator business models, where Doug had the opportunity to learn from some of the great industry pillars.

From there, Doug founded the Grawe Group, LLC, a law and consulting firm specializing in transportation. He has advised several businesses to help them achieve their goals through practical, sustainable risk management solutions. Doug thrives on serving as a partner to transportation business leaders and collaborating with them to figure out solutions, not just telling them what they can and cannot do.

Doug attended Iowa State University and holds a law degree from Hamline School of law. He is currently a board member for the Minnesota Trucking Association and chair of its Government Affairs Committee. Believing rules are made by those who speak up, Doug is active on a variety of policy issues impacting the transportation industry, but most notably protecting the rights of drivers to choose independence or employment in the transportation industry. Doug has written many trade articles on the independent contractor issue and submitted amicus briefs to the U.S. Supreme Court to protect the rights of drivers and carriers to choose.

About Openforce
Openforce is the leader in technology-driven services that reduce operating costs and mitigate risk for companies using independent contractors. Their cloud-based applications help companies and contractors alike achieve more sustainable, profitable growth by removing financial, operational, and compliance barriers to getting business done.