The so called AB5 law, which is intended to identify whether a worker is a company employee or independent contractor, won’t be applied to the case of trucking in California. This action was thanks to a decision by a Los Angeles Superior Court judge.
The AB5 law that found objectors in different sectors since the it took effect on January 1. On January 8, State Judge William Highberger ruled against it. The judge’s decision was made during the California Cartage Co. case which was about the suspected misclassification of truckers. That means that AB5 was preempted by an act of Congress regarding the truckers’ case.
There is also a federal case against California’s AB5 law which was granted on December 31. This was temporary restraining order to avoid the compliance of the law regarding motor carriers. Both cases can evolve in a positive way for objectors of the law but this battle is not over yet.
Owner-Operator Independent Drivers Association (OOIDA), affirmed that their legal team are checking and verifying rulings and lawsuits related to this topic. This is considered to be the beginning of a long legal challenge. The process to put the law in effect was chaotic and rushed as lawmakers didn’t consider all the repercussion and mitigating implicated.