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The California conundrum: Independent contractor state of play
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The California conundrum: Independent contractor state of play
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May 7, 2021 It’s not a good vibe right now, said Raman Dhillon, CEO of the California-headquartered North American Punjabi Trucking Association. He was talking about his group s membership s response to the news last week that a three-judge panel of the Ninth Circuit Court of Appeals had struck down a lower court s injunction against application of California s A.B. 5 contractor law and its ABC test s application to trucking.
The original suit that was ruled on had been brought by the California Trucking Association, who told
Overdrive it is planning to request what s known as an en banc review, a reconsideration from the entire panel of judges in the Ninth Circuit. As previously reported, from the April 28 ruling on the injunction, CTA has 14 days to seek rehearing. If that request is denied or if the rehearing fails to change the view of the court, it will be a mere seven days from the denial or failure before the injunction lifts.
With AB5 about to roil California trucking, industry ponders next step
Injunction that blocked independent contractor law could be lifted within weeks; the choices on what to do aren’t simple ones
Now what?
That will clearly be the question not just in California but in the management executive suites of trucking companies big and small all across the country that do business in the Golden State, given that an appellate court has reversed the injunction that stopped California from enforcing the AB5 law on independent contractors and its follow-up clarifying legislation, AB2257.
The injunction was granted in a lawsuit filed by the California Trucking Association against the state’s attorney general, who is now Robert Bonta but was Xavier Becerra when the suit was filed. Becerra is now Health and Human Services secretary.