Los Angeles, Calif. — On Friday, March 15, 2024, U.S. District Judge Roger Benitez denied a renewed injunction request from the California Trucking Association (CTA) and the Owner‑Operator Independent Drivers Association (OOIDA), allowing California’s AB 5 law to remain enforceable on truck drivers across the state.

AB 5, which took effect in January 2020, imposes the ABC test on any worker claimed as an independent contractor. The test requires that a driver be free from the hiring entity’s control, perform work outside the company’s usual business, and sign a contract that clearly states the independent‑contractor relationship. For the trucking industry, the “B” prong is the sticking point because it effectively bans the traditional leased‑owner‑operator model that many carriers rely on to staff long‑haul routes.

Judge Benitez had previously issued a preliminary injunction on New Year’s Eve 2019, arguing that AB 5 conflicted with the Federal Aviation Administration Authorization Act (FAAAA). That decision was overturned on appeal, and the judge now ruled that the state law does not force drivers to choose between federal and state compliance because the FAAAA contains no explicit classification standard for truck drivers. He also rejected claims that AB 5 violates the Dormant Commerce Clause or the Equal Protection Clause, stating that the law’s economic impact does not amount to purposeful discrimination against interstate commerce.

What This Means for Drivers

Owner‑operators in California must continue to treat their relationship with carriers as employee‑type arrangements unless they can prove their work lies entirely outside the carrier’s core business. CDL‑A drivers employed directly by carriers will remain subject to California wage‑and‑hour rules, including overtime and meal‑break provisions. Fleet managers can no longer rely on the leased‑owner‑operator model to sidestep benefits and payroll taxes, forcing a shift toward hiring more company‑driver staff or renegotiating contracts that meet the ABC test. The decision also signals that any future challenges to AB 5 will need to come from the legislature, not the courts.

Industry Reaction

OOIDA released a statement calling the ruling “disappointing” and hinted at an appeal, arguing that the decision will increase operating costs for independent drivers and limit flexibility in the market. CTA has not yet commented publicly, but legal analysts expect the association to file an appeal on the grounds of preemption and constitutional rights. The Teamsters, who supported the state’s position, praised the verdict as a win for driver protections and fair labor standards. Across the nation, trucking firms are watching the case closely, fearing that similar legislation could surface in other states.

Key Points

• Judge Roger Benitez denied the CTA and OOIDA injunction request on March 15, 2024.
• AB 5’s ABC test remains enforceable, keeping the leased‑owner‑operator model effectively illegal in California.
• The court found no conflict between AB 5 and the Federal Aviation Administration Authorization Act.
• Both the Dormant Commerce Clause and Equal Protection challenges were rejected.

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