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The Ninth Circuit Court of Appeals held today that the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) does not preempt application of California’s Assembly Bill 5 (“AB 5”), codified as amended at Labor Code section 2775, against motor carriers.
See Cal. Trucking Ass’n v. Bonta, No. 20-55106. This decision reverses a preliminary injunction against enforcement of AB 5 against motor carriers that a federal district court granted early last year. Employers in the transportation industry should take notice and review their independent contractor practices immediately.
The Facts
In September 2019, following the California Supreme Court’s decision in Dynamex Operations W. v. Superior Court, 4 Cal. 5th 903 (2018), California enacted AB 5, which codified the so-called “ABC test” for classifying workers as either employees or independent contractors. Subject to various exceptions, t
Latest California AB5-related decision spurs new appeals court arguments freightwaves.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from freightwaves.com Daily Mail and Mail on Sunday newspapers.
Calif. court opinion goes in favor of A.B. 5 applying to trucking
While a larger trucking case against California’s A.B. 5 law s application to motor carriers and owner-operators is still unfolding in a federal district court, a second state court in California has ruled that federal law does not preempt a law that would effectively outlaw the leased owner-operator model in the state.
Trucking has been operating under an exemption from A.B. 5 since the beginning of 2020, when the law went into effect. A lawsuit by the California Trucking Associations against A.B. 5 is still in progress, and an injunction is in place until that lawsuit plays out.