Two of the nation’s biggest trucking companies have added a “California Compliance Surcharge” to all shipments going into and out of the state in response to the state’s new labor regulations for truckers.
California Compliance Surcharge To Offset New Costs Of Operating In The State
ABF Freight System Inc. was the first to add the surcharge. On April 1, they added a $5.92 surcharge to any shipment moving into or out of California because of “significant new burdens” created by state’s January 1 requirement that companies compensate their employees for “nonproductive” periods like rest breaks and recovery periods.
Old Dominion Freight Line followed suit on May 2, announcing a $5.95 California compliance surcharge to all of the state’s shipments.
Other Carriers May Follow Suit
So far, these are the only two trucking companies to take action to offset the increased costs of operating in California, but many speculate that other carriers may impose similar charges now that ABF and Old Dominion have taken the first steps.