Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Lawsuit Aims to Overturn California Ruling on Classifying Owner-Operators

The Western States Trucking Association has filed a suit in the United States Court for the Eastern District of California challenging the ruling by the California Supreme Court that is seen as effectively nulling the ability of trucking companies to use owner-operators in the state.

David Cullen
David Cullen[Former] Business/Washington Contributing Editor
Read David's Posts
July 19, 2018
Lawsuit Aims to Overturn California Ruling on Classifying Owner-Operators

Ruling targeted by lawsuit signaled the end of working with owner-operators in California.

3 min to read


Ruling targeted by lawsuit signaled the end of working with owner-operators in California. [|CREDIT|]

The Western States Trucking Association has filed suitin the United States Court for the Eastern District of California challenging the ruling by the California Supreme Court that is seen as effectively nulling the ability of trucking companies to use owner-operators in the state.

In the landmark Dynamex Operations West Inc. v. The Superior Court of Los Angeles County decision, the state Supreme Court ruled that certain workers-- in particular transportation drivers-- should be presumed employees instead of independent contractors when evaluating wage and hour classification in class action cases.

Ad Loading...

That’s a mouthful, but according to WSTA, the upshot is the ruling signaled the end of working with owner-operators in California. That’s because it requires a company using an independent contractor to ensure their classification is proper under the newly adopted “A-B-C” test, which consists of certifying:

  • A That the worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact

  • B That the worker performs work that is outside the usual course of the hiring entity’s business

  • C That the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

“Most legal analysis of the ruling agrees the A-B-C test sets an impossible standard for most of our members to meet,” WSTA stated to its members back in May.

Ad Loading...

According to Rob Moseley, an attorney with Smith Moore Leatherwood, it’s the “B” part that is problematic.  “If you’re in the trucking business, it’s going to be a very difficult fight, because the ‘B’ prong of the A-B-C test basically says… the contractor has to be in a different business. They can’t be in your business.”

“Our intention is to nullify the [California] Supreme Court ruling that effectively eliminates the use of owner-operators, even one-truck motor carriers from the trucking marketplace,” Joe Rajkovacz, WSTA’s director of Governmental Affairs & Communications, told HDT on June 19.

“Our desired outcome is an immediate [federal] injunction against California utilizing an A-B-C test to determine employment classification in the trucking industry. Long term, [it should be] that California and its state agencies cannot utilize an A-B-C test in making employment classification decisions in the trucking industry.”

He added that as of now, “Virtually all entities in California utilizing independent contractors are at risk from predatory lawsuits because of the California Supreme Court decision in Dynamex. The trucking industry has unique legal protection under federal law from this type of decision.”

Rajkovacz noted that WSTA is also working with other organizations within the state for a legislative solution. “However, until and if, that can occur the trucking industry needs to be protected from this Supreme Court decision that amounted to legislating from the bench.”


Related: Trucking Groups to Challenge California Court's Independent Contractor Ruling

More Fleet Management

Illustration of a chalkboard with a hand drawing an arrow curving away from a partially erased straight arrow with the words "Embracing Change," the Heavy Duty Trucking Logo and the "cover feature" graphic.
Fleet Managementby Deborah LockridgeAugust 1, 2026

How Innovative Trucking Leaders Turn Change Into an Advantage

As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.

Read More →
Illustration of past due invoices with red X on top with background of a truck at a loading dock
Fleet ManagementJuly 27, 2026

Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.

When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.

Read More →
Photo of cable bridge crossing Detroit River
Fleet Managementby Deborah LockridgeJuly 23, 2026

Long-Awaited Canadian Border Bridge to Open in Detroit

For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.

Read More →
Ad Loading...
Blue International heavy-duty truck with Aurora driverless truck software coming head-on on an interstate highway
Equipmentby Deborah LockridgeJuly 22, 2026

Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight

Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.

Read More →
American Trucking Associations for-hire tonnage graph
Fleet Managementby Deborah LockridgeJuly 21, 2026

Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery

The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.

Read More →
Cyberstop column header depicting images of ChatGPT prompt on a smartphone and shadowy hooded figure
Fleet Managementby Ben WilkensJuly 17, 2026

Think Your Trucking Fleet Isn't Using Much AI? Think Again

Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.

Read More →
Ad Loading...
Photo of semi trucks with Panther, ArcBest, and ABF trailers backed up to docks, with ArcBest logo superimposed on top
Fleet Managementby Deborah LockridgeJuly 17, 2026

ArcBest Consolidates Brands, Cuts Workforce

The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.

Read More →
Cover of ATRI operational costs study with graph clip art and photo of trucks on highway in the background
Fleet Managementby Deborah LockridgeJuly 15, 2026

Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession

ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.

Read More →
Micheline AI Assistant.

Michelin Adds AI Assistant to MyConnectedFleet Platform

Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.

Read More →
Ad Loading...
LytxOne Platform.

LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools

New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.

Read More →