Executive Update

Don E. Garcia Secretary-Treasurer, Principal Officer

Standing in Support of AB 5 and AB 731

Teamsters from across the state have taken to the Capitol in support of AB 5 and AB 731. Your officers are at Teamsters 315 are among them! These two vital pieces of legislation are needed to benefit not only our members, but working men and women across the state.

In April of last year, the California Supreme Court handed down a landmark ruling that better defined the boundary between employees and independent contractors. This ABC test was implemented to assure that working people aren’t being cheated out of the basic protections they are entitled to such as a minimum wage, unemployment, and worker’s compensation. AB 5 aims was introduced by Assemblymember Lorena Gonzalez, a fellow Teamster. This bill will enshrine the Dynamex ruling in California law and provide clarity for industries that are unsure of what the case means to their businesses. Once passed, it will establish one clear definition on what it means to be an employee that will benefit workers statewide. We are proud to be supporting AB 5 and in conversation with representatives in Sacramento on behalf of our membership.


AB 731, authored by Assemblymember Ash Kalra, focuses on expanding the “rate review” process that applies to insurance plans sold to individuals and small groups. This expansion would allow California insurance regulators to review the rates charged to large groups, or businesses and trust funds with over 100 consumers covered. This expansion will ultimately improve the rate review process for the smaller groups, as it will ensure greater information is gathered across the state on plan rates and the cost of medical care. As current law stands, nearly 10 million Californians who are employed at larger corporations or receive coverage through union trust funds are being denied the protections provided to individuals and smaller businesses. AB 731 will extend those protections to those of us not currently protected. Since health care costs to those of us in those larger groups have been rising steadily with no regulatory process to control them, this bill is of the highest importance.

Both of these pieces of legislation need and deserve our support. Teamsters 315 is proud to join the fight for working people across the state. We encourage our members to voice support of these bills to your State Senate and Assembly representatives. Please visit http://findyourrep.legislature.ca.gov/ to find your representatives.