Sacramento, CA — The California Trucking Association and Owner‑Operator Independent Drivers Association filed an appeal with the Ninth Circuit on April 12, following a district court ruling that rejected their challenge to AB 5. The appeal comes after a judge in the state’s federal court ruled that the law’s ABC test applies to trucking contractors, a decision that threatens the industry’s current classification framework.
AB 5, enacted in 2019, created a three‑part ABC test to determine whether a worker is an employee or an independent contractor. The test’s “B” condition, which requires that a worker perform tasks outside the usual course of business of the hiring company, has been a stumbling block for trucking operators. Because most drivers run the day‑to‑day operations of a carrier’s routes, they routinely perform core business tasks, making the B condition difficult to satisfy.
District Judge Roger Benitez delivered the March decision, telling the parties that the courts are not the proper venue for changing the statute. He urged that “remedying complexities and perceived deficiencies in AB 5 are the kind of work better left to the soap box and the ballot box than to the jury box.” The Ninth Circuit had previously overturned an injunction in April 2021 that had granted the trucking industry an exemption from AB 5, restoring the law’s applicability to the sector.
What This Means for Drivers
Drivers who currently work as independent contractors may face reclassification as employees, which would bring mandatory benefits such as paid sick leave, minimum wage protections, and overtime pay. Owner‑operators could lose the flexibility that allows them to negotiate rates and control their own schedules, potentially raising operating costs. CDL‑A holders in fleet operations may need to adjust payroll systems to accommodate new reporting requirements under the law.
Industry Reaction
Carriers and trucking associations warn that the ruling could increase labor expenses and reduce the industry’s ability to adapt to market demands. Owner‑operators express concerns over the loss of independence and the impact on their profit margins. The industry’s voice is now focused on lobbying for legislative relief and clarifying the B condition to preserve the independent contractor model where it remains viable.
Key Points
- April 12 appeal filed by the California Trucking Association and Owner‑Operator Independent Drivers Association.
- District Judge Roger Benitez urged parties to pursue legislative change rather than judicial relief.
- AB 5’s B condition requires work outside the usual course of business, a hurdle for trucking contractors.
- The Ninth Circuit overturned a 2021 exemption that had previously shielded trucking from AB 5.
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