On April 12, the California Trucking Association and Owner-Operator Independent Drivers Association took action by filing an appeal to the Ninth Circuit Court of Appeals. This move comes after the Ninth Circuit, in April 2021, overturned an injunction that had previously exempted the trucking industry from AB 5.

AB 5 established the ABC test for determining worker classification, with the “B” condition posing challenges for the trucking sector. This condition mandates that a worker’s tasks must fall “outside the usual course of business of the company” they contract with to qualify as an independent contractor.

In the March ruling favoring California, District Judge Roger Benitez directed the trucking groups to address their concerns with state lawmakers rather than through the court system.

“Remedying complexities and perceived deficiencies in AB 5 are the kind of work better left to the soap box and the ballot box than to the jury box,” Benitez. “If sufficient political or economic pressure can be brought to bear by Plaintiffs and their supporters, the more onerous provisions of the statute can be amended. The courts, on the other hand, are not the proper bodies for imposing legislative amendments.”

Regarding the appeal to the Ninth Circuit, specific dates for further filings and arguments have yet to be announced.

Source: Commercial Carrier Journal

The post Trucking Groups Come Together to Push Back Against Latest AB 5 Ruling appeared first on Truck Drivers USA.

AB 5, active in California since January 2020, has faced persistent opposition from the trucking industry. This law implements the ABC test for worker classification, effectively prohibiting the traditional leased owner-operator model. According to this test, a worker must satisfy all three prongs to qualify as an independent contractor. Of particular concern to the trucking industry is the “B” prong, which mandates that the worker’s duties must lie “outside the usual course of business of the company” they contract with.

Judge Benitez, who previously granted a preliminary injunction in favor of trucking on New Year’s Eve 2019, denying the enforcement of the law, dismissed the latest request for injunction put forth by the California Trucking Association (CTA) and Owner-Operator Independent Drivers Association (OOIDA).

In response, OOIDA expressed disagreement with the ruling and indicated potential plans for an appeal. CTA has yet to respond to requests for comment. Legal experts anticipate an appeal from CTA but acknowledge that relief from AB 5 might not be forthcoming in the interim.

Judge Benitez clarified that the original preliminary injunction was based on the belief that AB 5 was preempted by the Federal Aviation Administration Authorization Act (F4A).

“[California’s law doesn’t make it] impossible for truck drivers to comply with both federal and state law because there is simply no federal standard of classification requiring compliance,” Benitez said. “The [F4A] does not dictate that truck drivers must be classified as independent contractors or that drivers are not subject to state wage and hour laws.”

However, this ruling was overturned on appeal, leading to the denial of renewed motions for injunction by CTA and OOIDA.

Despite claims of preemption and constitutional violations, including Dormant Commerce Clause and Equal Protection Clause infringements, Judge Benitez ruled in favor of California and the Teamsters on all counts presented by CTA and OOIDA.

“In the end, AB5 does not offend the core constitutional principle of prohibiting purposeful discrimination against interstate commerce,” Benitez said. “And while AB5 has economic effects, the effects do not confirm purposeful discrimination against interstate commerce in the design of AB5.”

Source: Commercial Carrier Journal

The post Newest Update on Trucking Industry’s AB 5 Law appeared first on Truck Drivers USA.