The California Trucking Association has decided to withdraw its appeal against the state´s AB5 law, which regulates worker classification, ending a legal battle that has lasted more than four years. The group initially planned to take its case to the Ninth Circuit Court of Appeals but has opted not to proceed with the litigation. Eric Sauer, the Association´s executive director, stated that although they believe in the validity of their arguments, they have decided not to move forward, considering the decision a victory for owner-operators in the state.

AB5, signed into law in 2019, uses the ABC Test to determine whether a worker is an independent contractor or an employee. The law has been particularly controversial in the transportation industry, affecting around 70,000 owner-operators.

Despite the California Trucking Association´s withdrawal, the Owner-Operator Independent Drivers Association (OOIDA) continues its appeal, arguing that the law discriminates against interstate truckers. OOIDA contends that AB5 harms California truckers and all owner-operators working in the state, regardless of their place of origin.

OOIDA´s action seeks to protect the rights of truckers operating under federal regulation, emphasizing that the fight for operational freedom in California is far from over.