A U.S. Southern District Court on Jan. 16 granted a preliminary injunction prohibiting California state officials from enforcing a controversial new law against motor carriers that makes it virtually impossible to contract with owner-operators in the state.
Trucking companies using owner-operators in California can breathe a sigh of relief for now, as a judge has extended a temporary restraining order keeping officials from enforcing the onerous terms of its AB5 independent contractor law against motor carriers.
Another court decision, this time at the state level, has reinforced the trucking industry’s contention that California’s stringent new ABC test restricting independent contractor use is preempted by federal law.
Trucking got a temporary reprieve from California’s AB5, a controversial new law in effect Jan. 1 severely limiting the ability to use independent contractors.
As a controversial new law targeting the use of independent contractors goes into effect Jan. 1 in California, there’s still immense uncertainty about how it will be enforced and even how long it will remain law in its current form.
The Western States Trucking Association filed a lawsuit in federal court challenging a construction-trucking-specific provision of California’s already controversial Assembly Bill 5, which severely restricts the use of independent contractors in the state.
The California Trucking Association and two California-based owner-operators filed a lawsuit challenging the "ABC" employment test mandated by the state's new independent contractor law, which the group says threatens the livelihood of independent truck drivers and is pre-empted by federal law.
You run a trucking business that uses owner-operators in California. What are your options now that the state has passed legislation that may make it impossible to use independent contractors?
Instead of focusing on companies that abuse the independent contractor model to avoid paying employee benefits, California has decided to do away with independent contractors as a regular part of operations at all.
California Gov. Gavin Newsom on Sept. 18 signed Assembly Bill 5 into law, a measure that trucking interests in the state say will wipe out the ability to use owner-operators.
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