Need to Know: What’s Ahead in 2024

With expected drops in interest rates, a potential soft landing of a recession, multiple elections, and major owners/agencies anticipating the release of more large and small projects in the coming months, there’s optimism across the industry that 2024 will be a strong or at least keep in line with 2023. Most of our members report solid backlogs with additional hope that projects that have repeatedly been delayed will finally start up, especially if interest rates go down.

While macroeconomic factors dictate a lot, we also know that what happens in the California legislature and at the bargaining table often has a more direct impact on the day-to-day. Since 2024 will not have any CBA negotiations, UCON and our union partners will be very busy dealing with a variety of legislative issues.

Perhaps the most relevant on the horizon will be the expected expiration of the construction exemption of AB 5. As a quick recap, AB 5 altered the definition of employee versus independent contractor, a shift that greatly impacts the historic trucker/broker system our industry relies on heavily. If the construction exemption expires at the end of 2024, contractors seeking to stay clear of potential liabilities will be forced to either exclusively use their own trucking fleets or rely exclusively on brokers to procure truckers for their transport needs if they haven’t done so already. This shift would also uniquely impact contractors who are signatory to the Teamsters.

If you haven’t already, now would be a good time to assess your options and make a strategic plan on what your company will do if the exemption remains or ceases. UCON is a great place to start asking questions and getting some clarity on the issues and your options. You should also connect with your go-to legal counsel or, if needed, ask for a referral from UCON. We’ll keep you updated on AB 5 as the year progresses.