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.
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.
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A bill making its way through the U.S. House would follow in the footsteps of California’s A.B. 5 law, passed in late 2019 and codifying a prior court decision, by severely curtailing the ability of leased owner-operators to haul freight for larger motor carriers.
The Protecting the Right to Organize (PRO) Act of 2021, in addition to other broad reforms to the nation’s labor laws, would institute the so-called ABC test for determining whether a business can contract work to an independent contractor. In the case of trucking, that means a motor carrier contracting loads to a truck driver, often via the common leased owner-operator model, in which a driver owns their own truck and business and runs under the authority of a larger carrier. The PRO Act was introduced in early February in both chambers of Congress.
March 11, 2021
Venice Enterprise, pulling various trailer types (including this curtainside flatbed) out of New York State, is among an unknown number of small fleets to receive a Satisfactory safety rating as a result of an entirely offsite audit in 2020. It s among the few bright spots in FMCSA s turn to offsite review work during the pandemic.Despite a well-documented ramp-up in offsite audits of trucking companies in 2020, the overall number of carrier reviews was down about 8% from 2019. Regulators also announced a policy change at the beginning of the pandemic to allow them to depart from traditional safety rating rules in light of the COVID emergency and issue safety ratings in some cases as a result of entirely off-site audits.