California Trucking Group Rekindles Authorized Battle to Block AB 5
Vehicles lined the Port of Oakland to protest the state’s regulation that classifies unbiased contractors as workers. (David Paul Morris/Bloomberg Information)
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The California Trucking Affiliation has requested a federal choose to concern a brand new preliminary injunction in an try to proceed its authorized battle to dam enforcement of California’s AB 5 regulation that CTA maintains will pressure owner-operators to change into motor provider workers.
Claiming it has new authorized arguments, CTA on Jan. 11, requested federal district Choose Roger Benitez to quickly block enforcement of the regulation that it stated “successfully eliminates owner-operators from any position in motor transport in California.”
The request comes after a federal appellate court docket rejected CTA’s try to cease enforcement of AB 5, and the U.S. Supreme Court docket’s denial to listen to the case. The regulation is meant to reclassify owner-operators as provider workers, and has been criticized by motor carriers and unbiased contractors.
Earlier than CTA’s unsuccessful first-round authorized effort to dam the regulation, Benitez in 2020 granted a preliminary injunction. In his order, Benitez of the Southern District Court docket of California, stated, “There may be little query that the state of California has encroached on Congress’ territory by eliminating motor carriers’ alternative to make use of unbiased contractor drivers, a alternative on the very coronary heart of interstate trucking.”
CTA’s new request mirrors an analogous request filed in December by the Proprietor-Operator Unbiased Drivers Affiliation. “As proven by declarations, current protests on the ports and surveys, owner-operators need the liberty to function their very own companies,” CTA wrote.
“The state defendants have by no means articulated how a motor provider can probably fulfill the statute, together with the ‘Prong B’ of the ABC check, and so they stay intent on implementing [the law] towards motor carriers,” CTA’s authorized transient stated. “They thus proceed to threaten irrevocable hurt to plaintiffs and the owner-operators who’ve constructed companies in reliance on federal regulation.”
What’s subsequent for AB5? Though the injunction is formally useless, it doesn’t imply that the authorized battles are over. #trucking #AB5 #California https://t.co/bvAr8CvqfF pic.twitter.com/HVhWz8ZN2c pic.twitter.com/ElI5t7uzlT
— OOIDA since 1973 (@OOIDA) September 5, 2022
The CTA authorized submitting famous that for many years, motor carriers throughout the US have supplied freight transportation companies by way of owner-operators — people who drive their very own vehicles and who function as unbiased contractors.
“Congress has acknowledged the important position that owner-operators carry out in interstate commerce, together with by way of the Federal Aviation Administration Authorization Act,” CTA’s transient famous. “In 2019, nonetheless, California handed Meeting Invoice 5, now codified in California labor code.”
The so-called F4A regulation prohibits states from “enacting or implementing a regulation, regulation or different provision having the pressure and impact of regulation associated to a value, route or service of any motor provider.”
California Trucking Affiliation to Attraction AB 5 Choice
The California Trucking Affiliation will enchantment a court docket resolution on the state’s unbiased contractor regulation that many in trucking deem unfavorable to the trade, CTA CEO Shawn Yadon stated on Might 3.https://t.co/6PhqOh1adZ pic.twitter.com/DRlCSC2ElK— CA Trucking Assoc. (@Caltrux) Might 5, 2021
CTA stated beneath the AB 5 regulation, motor carriers can now not supply the identical vary of companies as earlier than to prospects searching for to move cargo into or out of California.
“This has resulted in motor carriers abandoning the California market completely,” in line with the 32-page preliminary injunction request.
In a remark, CTA Senior Vice President of Authorities Affairs Chris Shimoda stated the case initially went up by way of the authorized course of on a movement for preliminary injunction based mostly on ninth Circuit precedent relating to “all-or-nothing” employee classification exams.
“When the Supreme Court docket denied CTA’s cert petition,” he stated, “the case was remanded to the district court docket for additional adjudication.
“With the lifting of the unique injunction, until a brand new injunction is granted, we’d anticipate the state would use the ABC check in any of its adjudicatory roles. Personal celebration litigation has been steady and ongoing.”
In a declaration accompanying the preliminary injunction request, Eric Sauer, CEO of CTA, wrote: “I’m conscious of conditions the place owner-operators have both retired, left the trucking trade or relocated out of California relatively than change into an worker driver. Many owner-operators are dedicated to being unbiased and don’t like being advised what to do by the state of California.”
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