Menu
The ongoing legal challenge against California’s AB 5 law, which threatens the traditional owner-operator/carrier leasing models in trucking, took a significant turn last week. After numerous delays, the U.S. District Court for the Southern District of California finally heard arguments from both sides of this contentious issue on November 13.
AB 5, enacted in 2019, aimed to reclassify workers traditionally seen as independent contractors into employees, primarily through the implementation of the “ABC test.” This law especially impacts trucking, where the “B” criterion – requiring contractors to perform work outside the usual course of the hiring company’s business – directly conflicts with the owner-operator model prevalent in the industry.
Overseeing the case is Judge Roger Benitez, who previously granted a preliminary injunction to the trucking industry in 2020. His line of questioning during the latest arguments focused on potential violations of federal law and impacts on interstate commerce, offering insights into his thought process.
Paul Torlina, government affairs counsel for OOIDA, who observed the proceedings, noted Benitez’s pointed questions toward the defendants. Particularly striking was the judge’s query about California’s singular approach compared to other states and its perceived “arrogance” in potentially affecting interstate trucking.
The California Trucking Association (CTA) and Owner-Operator Independent Drivers Association (OOIDA) are pushing for an exemption for interstate trucking. They argue that the law contradicts the Federal Aviation Administration Authorization Act and infringes upon the Commerce Clause and Equal Protection Clause of the U.S. Constitution.
The case brings to the forefront the tension between state regulations and the national need for a consistent and functional trucking industry. The discriminatory effect of AB 5 on interstate drivers was a central theme, with concerns that truckers might avoid California routes altogether.
Given Judge Benitez’s familiarity and engagement with the case, a decision could come within a few months, quicker than the usual timeline. However, regardless of the outcome, an appeal to the Ninth Circuit Court of Appeals is almost certain, potentially dragging the case out for another two years.
This legal battle over AB 5 is more than just a state issue; it’s a critical juncture for the trucking industry nationwide. The outcome could redefine the working model for thousands of truckers and impact the movement of goods across state lines. As the industry waits with bated breath, the decision of Judge Benitez will undoubtedly be a landmark moment in the ongoing saga of balancing worker rights with industry needs.
To help your trucking company grow.
Useful Links