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Owner-operators of freight trucks in California may be classified as employees, federal court rules.
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Trucks are stranded on Interstate 5 in California during a winter storm. More than 70,000 truckers in California can be classified as employees rather than contractors, a federal appeals court ruled Wednesday.David McNew / Getty Images
More than 70,000 owners of freight and delivery trucks in California can be classified as employees of the companies that hire them, with rights to overtime and sick pay and work expenses, rather than as independent contractors, a federal appeals court ruled Wednesday.
A federal judge had ruled that a California law allowing the owners to be considered employees interfered with uniform nationwide regulation of interstate transportation. U.S. District Judge Roger Benitez of San Diego barred the law, AB5, from applying to truckers in 2020 and cited a 1994 federal law overriding any state laws that are “related to a price, route
A three-judge panel of the 9th U.S. Circuit Court of Appeals has rejected a lower court’s preliminary injunction that blocked the immediate implementation of California’s Assembly Bill 5 law, which motor carriers have claimed would make use of independent contractors next to impossible.
Court ruling suggests California truck classification law to stand
| Apr 28, 2021 6:05PM EDT
A federal appeals court ruling on AB5 could have a significant impact on drayage companies in the state, but it will likely be weeks, or months, before the outcome is reached, according to an attorney.
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Truckers fall under California gig economy law, court says
April 28, 2021
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SAN FRANCISCO (AP)
California s gig economy law applies to some 70,000 truck drivers who can be classified as employees of companies that hire them instead of independent contractors, giving them a right to overtime, sick pay or other benefits, a federal appeals court ruled Wednesday.
The 9th U.S. Circuit Court of Appeals in San Francisco overturned a ruling last year by a federal judge that said federal interstate transportation law pre-empted 2019 s Assembly Bill 5.
In overturning that decision, the appellate court s 2-1 decision found that AB5 doesn t conflict with federal law because it is “a generally applicable labor law that affects a motor carrier’s relationship with its workforce and does not bind, compel, or otherwise freeze into place the prices, routes, or services.