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CTA Takes AB5 Independent Contractor Battle to Supreme Court

The California Trucking Association is pushing its challenge to Assembly Bill 5 to the highest court in the land, seeking to protect the business model for thousands of independent CDL-A drivers.

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Sacramento, California — The California Trucking Association (CTA) has moved to bring its legal dispute over California’s independent contractor statutes to the U.S. Supreme Court. The core of the conflict involves Assembly Bill 5, a piece of legislation that replaced the traditional multi-factor test with a rigid \"ABC test\" for classifying workers. For the trucking industry, this shift is not merely a bureaucratic hurdle; CTA argues that the law effectively bars motor carriers from engaging independent contractor drivers, forcing owner-operators to either dissolve their small businesses or stop hauling freight within state lines entirely.

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The legal journey has been a long one, beginning with a lawsuit filed by CTA in 2018. That initial filing contended that the new classification standards were unworkable for the structural realities of the trucking industry. The Ninth U.S. Circuit Court of Appeals initially sided with the state in April, rejecting CTA’s challenge. When the association sought a review of that decision in June, the court declined to hear it. Now, CTA has submitted a formal filing indicating its intent to escalate the matter to the nation’s highest tribunal, aiming to overturn the lower court’s interpretation of the law.

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Despite the adverse ruling at the appellate level, the immediate threat to operations has been paused. The Ninth Circuit granted a motion to preserve a prior ruling that explicitly exempts the trucking industry from the AB5 requirements until the Supreme Court renders a final judgment. This temporary reprieve allows current operations to continue while the constitutional and statutory questions are debated at the federal level. CTA has indicated that its request for Supreme Court review is due on or before November 18, 2021, setting a specific deadline for the next phase of this high-stakes litigation.

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What This Means for Drivers

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For the average CDL-A driver or owner-operator, the outcome of this case determines the viability of independent work in California. If the Supreme Court upholds the application of AB5 to trucking, thousands of owner-operators would lose their legal status as independent businesses. They would be reclassified as employees of the carriers they haul for, stripping them of autonomy over their routes, hours, and equipment investments. This would fundamentally alter the landscape for OTR truck drivers who rely on the flexibility of independent contracting to maximize their earnings. The preservation of the current exemption is critical, as it allows these professionals to continue operating under the existing regulatory framework managed by FMCSA regulations rather than state-level labor mandates.

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Industry Reaction

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The broader trucking sector has rallied behind CTA’s position, viewing the law as an existential threat to the owner-operator segment. Sean McNally, a spokesperson for the American Trucking Association, expressed satisfaction with the Ninth Circuit’s decision to block enforcement during the appeal period. McNally stated that the ATA hopes the Supreme Court will not only accept the case but also recognize the validity of CTA’s arguments and reverse the lower court’s ruling. This unified front from major trade organizations signals that the fight over worker classification in trucking is far from over, with national groups actively supporting state-level associations in their legal challenges.

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Key Points

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  • CTA is petitioning the U.S. Supreme Court to review the application of AB5 to the trucking industry.
  • The \"ABC test\" under AB5 is cited by CTA as a barrier that prevents carriers from using independent contractors.
  • A temporary exemption for the trucking industry has been granted, halting enforcement until the Supreme Court decides.
  • The American Trucking Association supports CTA’s appeal, hoping for a reversal of the Ninth Circuit’s decision.
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Pete Lindqvist
Fleet technology correspondent covering ELDs, telematics, autonomous trucking, and the gear that's changing life in the cab. Pete holds an active Class A CDL and tests equipment on working routes.