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California’s A.B. 5 law fuels demand for driver leasing services

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Updated Dec 10, 2019

When California’s Assembly Bill 5 (A.B. 5) law takes effect on Jan. 1., 2020, carriers will no longer be able to contract with California-based owner-operators under their authority. Landstar, Prime, Swift, Knight Transportation and others are already restructuring their operations and will require their contractors who live in California to either sell their trucks and become employees or move out of state.

As it turns out, A.B. 5 has fueled demand for a niche service in the trucking industry: driver leasing services. Companies that specialize in driver leasing can fill gaps for carriers that need drivers in California, and elsewhere, on a temporary or full-time basis.

Contracted Driver Services, based in Goodyear, Ariz., has seen business demand increase significantly in California and nationwide since launching a new technology platform that makes it possible to provide carriers with drivers on demand.

Looking to combat the industry-wide driver shortage, Contracted Driver Services (CDS) launched F|Staff in February 2019. The on-demand staffing and job monitoring app connects motor carrier partners to its available driver employees. The new technology created an urgent need for CDS to recruit, hire and train drivers faster and more efficiently. 

After launching the F|Staff app, CDS implemented a driver applicant tracking software to better manage qualification screening, background checks and other tasks in recruiting. To further increase its speed to hire drivers, CDS partnered with Luma Brighter Learning.

“The decision to develop F|Staff came from a core belief that people and technology work best together,” said April Ray, chief marketing officer of CDS. “We champion and strive for early adoption and work with partners, like Luma, who are experts at giving people a frictionless way to use technology with user-friendly interfaces and experiences.”

Faster hiring and orientation