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.
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.
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In 2020, a California district court granted a preliminary injunction to prevent enforcement of Assembly Bill 5 (“AB 5”) against motor carriers operating within California. AB 5 codified the judge-made “ABC test” for classifying workers as either employees or independent contractors. The district court concluded, “there is little question that the State of California has encroached on Congress’ territory by eliminating motor carriers’ choice to use independent contractor drivers, a choice at the very heart of interstate trucking.”
Shortly after the district court’s decision, the State of California and the International Brotherhood of Teamsters appealed to the 9
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