Posts tagged Business to Business exemption
Truckers tell Ninth Circuit that California law unfairly bans independent contractor drivers
April 10, 2025 // Though a business-to-business exemption is available under the law, the association says members can't apply because they have to follow contradictory federal law that says trucking companies need to have exclusive control over trucks involved in interstate commerce. “One of the requirements of the business-to-business exemption is that the worker be free from the control of the business. Leased owner-operators in inter-state commerce must comply with federal regulations called the Truth In Leasing regulations which require the motor carrier to have exclusive possession and control of the vehicle and the operation of that vehicle in inter-state commerce. Whatever the scope of that control is it can’t be squared with the B2B requirement that the worker be free from control. It’s irreconcilable,” Cullen said.
AB5 specifically targets interstate truckers, OOIDA says
August 8, 2024 // “AB5’s blanket prohibition of leased owner-operators constitutes an unreasonable burden on interstate commerce in violation of the dormant Commerce Clause of the U.S. Constitution under the test established by the Supreme Court in Pike v. Bruce Church Inc.,” OOIDA wrote. “Under Pike’s balancing test, AB5’s burden on leased owner-operators is absolute, and the benefits to the state are minimal, if not illusory. There is no cost truckers can incur or administrative hurdle they can overcome to keep their independent contractor small businesses as leased owner-operators.”