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California Trucking Association Files Suit to Block Implementation of Assembly Bill 5


Yesterday, the California Trucking Association filed suit in federal court, seeking to block implementation of Assembly Bill 5.

Readers will recall that the California Legislature passed Assembly Bill 5 recently, which Governor Gavin Newsom signed into law.  As a refresher, Assembly Bill 5 codified the ABC test, created by a California Supreme Court decision.  That ABC test makes it easier for workers to be classified as employees rather than independent contractors.  (The new law is set to go into effect January 1, 2020.)  Many large scale employers in the state, including Lyft & Uber, have since gone on the offensive as they seek to be exempt from the new law.

The California Trucking Association’s lawsuit claims Assembly Bill 5 runs afoul of federal law because the ABC test is preempted by constitutional clauses regarding federal supremacy and commerce.  Further, the lawsuit alleged that the ABC test conflicts with federal laws for motor carriers and transportation.  Interesting enough, the California Trucking Association also has claimed that truck drivers in the state want to remain classified as independent contractors do as to maintain their ability to provide services as owner-operators of their rigs.  (Presumably, this “freedom” would vanish if the truck drivers became employees.

The end goal of the lawsuit?  To obtain a ruling that the ABC test not apply to the trucking industry.  While it is still too early to predict the outcome of the legislation, I would not be surprised if a temporary injunction were issued to prevent Assembly Bill 5 from going into effect while this lawsuit plays out further.


For a copy of the lawsuit:  https://01a3edcb-713b-4446-a7f4-8c833b6d990e.filesusr.com/ugd/7c8ac7_8b183e17b4e64b168c01ee094b592ba4.pdf

For additional information:  https://www.google.com/amp/s/www.sfchronicle.com/business/amp/Trucking-group-sues-to-be-exempted-from-14829931.php

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