An appeals court panel has reversed a lower court’s preliminary injunction protecting California’s trucking industry from the state’s onerous AB5 law – a law that many believe virtually eliminates the traditional trucking owner-operator model in the state.
One of the lawsuits challenging California’s controversial ABC test as it applies to the trucking industry, where it will widely disrupt the owner-operator model, suffered a setback in the California Court of Appeals.
California voters approved Proposition 22, agreeing with the gig economy companies that the state’s strict ABC test set forth in last year’s controversial AB5 law should not apply to drivers such as those for Uber and Lyft. What does this mean for trucking?
Oral arguments in front of an appeals court raise concerns that trucking’s challenge to California’s controversial AB5 independent contractor legislation could face an uphill battle.
Season two of the HDT Talks Trucking podcast is now available, covering topics such as California’s AB5 law restricting the use of independent contractors, autonomous trucks, electric trucks, and reducing unscheduled downtime.
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.
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?
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