Assembly committee advances bill requiring ports to collect data on trucking companies to detect driver misclassification

The Assembly Labor and Employment Committee on Thursday voted 5-0 to advance SB 703, which would require California ports to collect and report information about trucking companies that enter port facilities to help identify possible misclassification of port truck drivers as independent contractors.

Senator Richardson, the bill uthor, told the committee the measure targets what she described as widespread misclassification of port truck drivers, saying "more than 80% of them are actually misclassified as employees." Richardson said misclassification strips workers of protections and creates unfair competition for compliant companies. "SB 703 addresses this problem by requiring the ports to collect and report key information that will enable the regulators to identify non compliant actors and to hold them accountable," she said.

Shane Guzman, testifying on behalf of the California Teamsters Public Affairs Council as sponsor representative, said existing law provides tools such as joint liability but enforcement is hindered by lack of data. "You need that data, to be able to determine, who's following the law and who should be prosecuted for their misconduct," Guzman said, describing some practices as "fraud on the worker" and "fraud on the state." Elmer Lizardi of the California Federation of Labor also supported the bill, saying misclassification leaves drivers without workplace protections and can saddle them with equipment and fuel costs.

Dan Cha of the Port of Long Beach said the port had no formal position and had been engaging with sponsors. The California Trucking Association and other industry groups told the committee they expect to remove opposition after recent amendments and continued negotiation.

The committee recorded a roll-call vote sending the bill out 5-0; Assemblymembers Ortega, El Hawari, Kalra, Lee and Ward voted aye. The secretary later clarified the committee ction as "do pass and be re-referred to the committee on transportation." No mover or seconder was recorded in the transcript.

If enacted as drafted, the bill would not change substantive wage-and-hour tests but would require ports to collect and report specific operational information about trucking companies and their drivers to assist enforcement agencies in identifying potential misclassification and enforcing existing accountability measures.