Posts tagged California Trucking Association
OOIDA makes now-solo case in court that California’s AB5 should exempt trucking
April 23, 2025 // For OOIDA, which is carrying on the lawsuit that was originally filed by the California Trucking Association in 2019, the issue is clear: AB5 “categorically prohibits leased owner operators from operating in California,” OOIDA outside counsel Paul D. Cullen Jr. said in his opening remarks. (CTA last August decided not to pursue the appeal to the 9th Circuit.)
End of an era: California Trucking Association dropping appeal against AB5
August 23, 2024 // The high-water mark of CTA’s fight came on New Year’s Eve 2019 when Judge Roger Benitez of the U.S. District Court for the Southern District of California handed down an injunction blocking AB5’s enforcement against trucking in the state. But from that point, the CTA suffered a series of losses. An appellate court in a 2-1 decision overturned the injunction in April 2021. The CTA took the appeal to the Supreme Court, which denied review in June 2022 and kicked the case back to the District Court.
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.”
California Supreme Court upholds AB5 exemption for gig workers
July 29, 2024 // Case on independent contractor law involved workers’ comp and ballot initiative Prop 22 that granted carve-out
Trucking groups appeal AB5 ruling to Ninth Circuit
April 16, 2024 // California signed AB5 into law in 2019. The worker classification law is based on the ABC Test, which requires a business to demonstrate three factors are established before a worker can be deemed an independent contractor. The “B prong” of the ABC Test appears to prevent a trucking company from classifying a truck driver as an independent contractor regardless of the level of control or any other factors. The California Trucking Association and OOIDA contend that AB5 imposes undue burdens on interstate commerce in violation of the dormant Commerce Clause. In addition, OOIDA and the state trucking group have said that the law’s decisions on who it exempts violate the U.S. and California constitutions’ equal protection clauses.
Groups lose latest court attempt to block California’s AB5 from state’s trucking sector
March 20, 2024 // “Remedying complexities and perceived deficiencies in AB5 are the kind of work better left to the soap box and the ballot box than to the jury box,” Benitez wrote in his decision. “If sufficient political or economic pressure can be brought to bear by [CTA and OOIDA] and their supporters, the more onerous provisions of the statute can be amended. The courts, on the other hand, are not the proper bodies for imposing legislative amendments.”
Further appeals to block AB5 from California trucking seen as a long shot
March 19, 2024 // Appeals are possible of the decision Friday in the U.S. District Court for the Southern District of California that emphatically rejected all the arguments by the California Trucking Association (CTA) and the Owner-Operator Independent Drivers Association. But several observers of the legal battle that has gone on for more than four years said that may prove too big a challenge to proceed. “I’m sure that some will advocate for the appeal and exhausting all efforts, but I’m certainly not bullish on the likelihood of success in the 9th Circuit,” an attorney who is not representing any of the parties and requested anonymity said of possible future CTA/OOIDA action. “It is time to ‘move on’ absent the political will to change.”
9th Circuit panel will hear Uber/Postmates case on AB5
December 22, 2023 // The decision handed down by a three-judge panel in March was notable primarily for its reasoning that Uber and Postmates had been denied equal protection of the law in the process that led to the California approval of AB5, state legislation that required companies that hire independent contractors to reclassify them as employees. Equal protection of the law was the only claim by Uber and Postmates that the appellate panel backed; it supported the lower court rejection of other arguments. The panel cited the statements of then-Assemblywoman Lorena Gonzalez, now a state labor leader but the key driver in turning AB5 into law, as evidence that the move to more tightly define when a worker can legitimately be considered an independent contractor was an effort targeted at gig drivers like those at Uber.
Lawyers will square off on California trucking’s latest AB5 exemption request
November 12, 2023 // AB5 is a state law that seeks to define independent contractors through the ABC test. For trucking, the B prong in the ABC test is a particular burden, as it defines an independent contractor as one who “performs work that is outside the usual course of the hiring entity’s business.” A trucking company hiring an independent owner-operator to move freight could be challenged under the B prong. The various participants in the case have filed briefs in recent weeks laying out their arguments that will be reiterated in court Monday. The last year has seen revised complaints from CTA and OOIDA, widening the scope of their arguments. Those revisions and the state responses have provided extensive documentation on the positions each side is taking in the case, which is formally known as CTA v. Bonta, after Rob Bonta, the state’s attorney general. (The original defendant in the case was then-Attorney General Xavier Becerra, now the Biden administration’s secretary of Health and Human Services.)
AB5 needlessly reclassifies genuine independent contractors, OOIDA says
November 8, 2023 // OOIDA, which is serving as an intervenor in a case against the state’s worker classification law, told the court in its Oct. 27 reply brief that AB5 needlessly causes genuine independent contractors to be reclassified as employees. “AB5 discriminates against and imposes undue burdens on interstate commerce in violation of the dormant Commerce Clause, and the disparate treatment of AB5’s business-to-business and construction exemptions violates the U.S. and California constitutions’ equal protection clauses,” OOIDA wrote.