Two major trucking companies have now added a surcharge to all shipments within California.
This “California Compliance Surcharge” on all shipments going into and out of the state is due to the state’s new labor laws for truckers.
On April 1st, ABF Freight Systems Inc. added the $5.92 surcharge. An ABF executive said that the charge was due to “significant new burdens” on employers who pay employees on a piece-rate basis. According to DC Velocity, The requirement states that companies must compensate employees for rest breaks and recovery periods as well as other “nonproductive times.”
On May 2nd, Thomasville, N.C. based, Old Dominion Freight Line announced their $5.95 California compliance surcharge.
As of now, only these trucking companies have taken this action to offset their increased operating costs. However, other carriers may start to follow suit and impose similar charges.