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


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

ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Ad Loading...
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →
Ad Loading...
Gloved hand fueling a truck beside a graphic listing ATRI’s top three trucking concerns for 2026: fuel prices, lawsuit abuse reform and CSA.
Fleet Management•by Deborah Lockridge•October 19, 2026

Diesel Prices Hijack Trucking’s Worry List

ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.

Read More →
Illustration showing ladders against a blue background with Heavy Duty Trucking Emerging Leaders logo and the words "2026 nominations now open"
Fleet Management•by Staff•October 16, 2026

Nomination Deadline Extended for HDT Emerging Leaders

Just a few more days to nominate accomplished trucking fleet professionals under 40 who are making an impact and helping lead the industry forward for the HDT Emerging Leaders award. Deadline extended to October 20!

Read More →
Headshot of Mark Colson in front of a truck grille next to an American Trucking Associations logo
Fleet Management•by Deborah Lockridge•October 15, 2026

What Will ATA’s New Leader Bring to Trucking's Table?

Incoming President and CEO Mark Colson’s record in Alabama offers clues about his priorities and approach following Chris Spear’s abrupt departure as the head of the American Trucking Associations.

Read More →
Ad Loading...
Waabi-Volvo autonomous VNL truck.
Fleet Management•by News/Media Release•October 13, 2026

Volvo, Waabi Start Commercial Autonomous Operations in Texas

Volvo VNL Autonomous trucks, powered by the Waabi Driver, are hauling freight directly to third-party facilities for a customer in Texas.

Read More →