California Trucking Association wins injunction, trucking remains exempt from AB5

Date: Friday, January 17, 2020
Source: Supply Chain Dive

Dive Brief:

  • U.S. District Judge Roger Benitez granted the California Trucking Association (CTA) a preliminary injunction, which will exempt the California trucking industry from Assembly Bill 5 (AB5), according to court documents filed Thursday.
  • "There is little question that the State of California has encroached on Congress’ territory by eliminating motor carriers’ choice to use independent contractor drivers, a choice at the very heart of interstate trucking," Benitez wrote in his order.
  • The injunction will remain in place as the court considers CTA's case, which argues federal law preempts AB5. Benitz issued the injunction based on the strength of CTA's argument and said, "with AB-5, California runs off the road and into the preemption ditch of the [Federal Aviation Administration Authorization Act]."

Dive Insight:

Benitez's decision bars California Attorney General Xavier Becerra, one of the defendants in the case, from enforcing AB5 for motor carriers until the court reached a final verdict in the case.

It's not immediately clear what the timeline is for the hearing. Derek Myers, an attorney with Chauvel & Glatt, told Supply Chain Dive prior to the decision that regardless of how the case settles, the other party will most likely appeal.

The CTA argues AB5 would impact capacity and rates if it were put into place, and owner-operators have protested the legislation that sought to protect workers from misclassification.

This is a developing story. Here's a look at how it's played out so far.

 

Read from the original source.

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