State of California moves closer to bill to hold customers liable for bad drayage companies.

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The bill will call for the Department of Labor Standards Enforcement to publish a list of port drayage carriers, or their successor companies, together with outstanding conclusions for wage offenses and other labor law violations. The accountability of customers will likely be determined through civil court or through the Department of Labor Standards Enforcement. The passage by the appropriations committee, which has a state on almost any legislation with financial or budgetary impact, sets the stage for a vote by the complete meeting, which could occur early next week.

Customers won’t be held responsible if they finish their contract having a drayage carrier with 90 days of their being recorded by the Department of Labor Standards Enforcement.
A California bill that would transport freight forwarders and beneficial cargo owners responsible for wage disputes between jack drayage carriers along with their drivers took a step closer to becoming law. The California Assembly’s appropriations committee passed Senate Bill 1402. The bill, also introduced February, could require that customers additionally be responsible when port drayage carriers don’t produce well on conclusions over settlement and wage disputes together with drivers.

The bill sponsors say by holding drayage clients accountable for unpaid claims and wages they are able to use their”market power to bring about needed change in the industry.”
The bill comes from investigations into Southern-California drayage industry, which is basically made up of independent builders that rent trucks from owners. Based on the bill’s legislative analysis, some 1,150 drivers have filed claims with the state’s Department of Labor Standards Enforcement. The Department of Labor Standards Enforcement has awarded $45 million to 450 drivers. But many drivers have not been able to secure these assets as the company organizations have sometimes shut up company, only to reopen under a different name. The California Senate passed May.

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