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The Ninth Circuit Finds California's ABC Test is Not Preempted by the Federal Aviation Administration Authorization Act | Epstein Becker & Green

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For decades, the practice of motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of a recent court decision.
On April 28, 2021, in
CTA v. Bonta”), the United States Court of Appeals for the Ninth Circuit addressed whether the broad preemption language of the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) precludes enforcement of California’s Assembly Bill 5 (“AB-5”) against motor carriers operating in California. (AB-5 is discussed here.) In a split 2-to-1 decision that may have enormous (adverse) implications for motor carriers operating in California, the Ninth Circuit held that the California Trucking Association (“CTA”) was unlikely to succeed on the merits of its lawsuit challenging AB-5 becau ....

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Ninth Circuit California's ABC Test Not Preempted by FAA Auth Act

Motor carriers arranging for freight to be transported by independent owner-operators i.e., independent contractors who drive their own trucks has been ubiquitous. However, this practice is now under threat in California because of decision in California Trucking Ass’n v. Bonta, ....

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Keep on Truckin'

Julius Young
Workers have won a big victory in the Federal courts, as the 9th Circuit Court of Appeals has ruled that AB-5 can be enforced against the California trucking industry, and is not “pre-empted” by a Federal law known as the Federal Aviation Authorization Act of 1994.
The California Trucking Association and two independent owner-operators had filed a lawsuit alleging that the “F4A” law precluded application of AB-5. AB-5, passed in 2019, codifies the “ABC test” adopted to define employment status in the California Supreme Court case known as Dynamex. They obtained an injunction at the Federal District Court level, preventing AB-5 from being enforced against any motor carrier doing business in California. But on appeal, the trucking companies have lost, and the Teamsters and owner operators who believe they were misclassified have won. ....

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Ninth Circuit Rules California's AB5 Will Apply to Motor Carriers | Arent Fox

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The Ninth Circuit Court of Appeals has issued a long-awaited decision on the question of whether AB5, California’s strict independent contractor misclassification statute, may be applied to motor carriers, or whether the Federal Aviation Administration Authorization Act (FAAAA or F4A) preemption language precludes such application.

In a blow to motor carriers statewide, the Court reversed the previously ordered injunction against the application of AB5 to California’s motor carriers, holding that AB5 is not preempted under the FAAAA. The full opinion in the case of California Trucking Association v. Bonta can be found here. Our previous alert discussing this issue can be found here. ....

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