News Alert: AB5 free to be enforced in California’s trucking sector
Appeals court rules law regulating use of independent contractors is not preempted by federal law; injunction was in place since start of 2020 Photo: Jim Allen/FreightWaves
An injunction that stopped the California trucking industry from coming under AB5, the state’s law governing the use of independent contractors, has been overturned.
A three-judge panel in the U.S. Court of Appeals for the 9th Circuit, in a 2-1 vote, handed down its decision Wednesday after hearing oral arguments back in early September.
In his dissent, Judge Mark Bennett summed up the impact of the appellate court’s decision in language that the California trucking sector has been dreading for many months in the case originally brought by the California Trucking Association.
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6:33 p.m.: Sacramento stays in red tier while Amador and Sutter improve
A few counties in Northern California have moved into less-restrictive tiers in the state s reopening system based on their COVID-19 positivity test rates.
Amador, Glenn and Sutter Counties have moved from the second-most restrictive red tier to the orange tier. Mendocino County has moved from orange to yellow.
Sacramento County, with a case rate of 8.4 per 100,000, has been in the red tier since March 15.
Updated May 3, 2021
The Ninth Circuit Court of Appeals overturned a lower court injunction that had exempted the trucking industry from California s AB 5 law. The injunction could be lifted as soon as May 19.
The leased owner-operator model in California suffered a severe blow Wednesday as the Ninth Circuit Court of Appeals reversed an injunction that had exempted the trucking industry from state’s AB 5 law and the ABC test for determining validity of any independent contractor classification.
Transportation specialists Scopelitis, Garvin, Light, Hansen and Feary said the California Trucking Association has 14 days to seek rehearing and up to 150 days to appeal with the U.S. Supreme Court. Scopelitis added that the injunction will be lifted either seven days after the expiration of time to request a rehearing or following a denial of a request for rehearing. Or it could be stayed upon further petition of CTA, such as if CTA seeks review by the U.S. Supreme Court.
The 9th Circuit Court of Appeals has made its decision in
California Trucking Association v. Becerra and the International Brotherhood of Teamsters. Sadly, it is yet another horrible blow against the California independent professional and the independent trucking industry.
An injunction that stopped the California trucking industry from coming under AB5, the state’s law governing the use of independent contractors, has been overturned.
A three-judge panel in the U.S. Court of Appeals for the 9th Circuit, in a 2-1 vote, handed down its decision Wednesday after hearing oral arguments back in early September.
In his dissent, Judge Mark Bennett summed up the impact of the appellate court’s decision in language that the California trucking sector has been dreading for many months in the case originally brought by the California Trucking Association.
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