California's AB5 Enforcement Action Snags Three Companies, Resulting in $868K Penalty for Misclassification

The California Labor Commission has cited three companies, including Ryder and Costco, for misclassification of independent contractors under the state's AB5 law. The companies are facing an $868K penalty for labor law violations, with the Labor Commissioner concluding that they exercised control over the delivery drivers, making them jointly liable for misclassification and wage theft. This is believed to be the first enforcement action against trucking companies under AB5.