An article published Tuesday by news agency Reuters claimed that SCOTUS had denied CTA’s petition for the Supreme Court to hear its case, which challenges the California law that codified the ABC test for determining independent contractor status, which would effectively ban the leased owner-operator model in the state. The 'B' prong of the ABC test is what proves to be problematic for trucking, as it requires a contractor to be outside the normal course of business of the entity contracted to.
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In April, the 9th Circuit panel held that the application of California Assembly Bill 5 (AB 5) to motor carriers is not preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA). The panel found the district court abused its discretion by granting the preliminary injunction. The panel concluded that AB 5 is a generally applicable labor law that affects a motor carrier’s relationship with its workforce and does not bind, compel, or otherwise freeze into place the prices, routes, or services of motor carriers.
The California Trucking Association (CTA) recently filed a petition for writ of certiorari with the Supreme Court. The petition requests the Supreme Court weigh in on whether the FAAAA preempts the application to motor carriers of a state worker-classification law that effectively precludes motor carriers from using independent owner-operators to provide trucking services.
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Trucking's AB 5 independent contractor suit still pending
Despite reports, SCOTUS has yet to determine whether it will hear CTA's case on California's AB 5 law that would restrict the leased owner-operator model in the state.
In April, the 9th Circuit panel held that the application of California Assembly Bill 5 (AB 5) to motor carriers is not preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA). The panel found the district court abused its discretion by granting the preliminary injunction. The panel concluded that AB 5 is a generally applicable labor law that affects a motor carrier’s relationship with its workforce and does not bind, compel, or otherwise freeze into place the prices, routes, or services of motor carriers.
The California Trucking Association (CTA) recently filed a petition for writ of certiorari with the Supreme Court. The petition requests the Supreme Court weigh in on whether the FAAAA preempts the application to motor carriers of a state worker-classification law that effectively precludes motor carriers from using independent owner-operators to provide trucking services.
The California Trucking Association Petitions U.S. Supreme Court Over AB 5
In April, the 9th Circuit panel held that the application of California Assembly Bill 5 (AB 5) to motor carriers is not preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA). The panel found the district court abused its discretion by granting the preliminary injunction.