California’s First Major AB5 Trucking Enforcement May Be Underway: Ryder and Costco Among Those Cited

California appears to be moving forward with what could be the first significant AB5 enforcement action in the trucking sector. According to reporting from FreightWaves, state officials have cited three companies, including a carrier, Ryder, and Costco. for alleged misclassification of drivers under AB5.

AB5, which makes it harder for companies to classify workers as independent contractors, has hovered over the trucking industry for years. But until now, enforcement had been slow and mostly unclear. This action suggests California is preparing to apply the law more aggressively to trucking operations, brokers, and major shippers.

If confirmed, this could have ripple effects across the supply chain, from how carriers manage owner-operators to how large retailers and logistics providers structure their transportation partnerships.