CTA Abandons AB-5 Fight
After approximately four years of fighting in various court battles against AB-5’s ramifications on the trucking industry, the California Trucking Association (CTA) is throwing in the towel, but not without a concession from the state of California.
Details
CTA CEO Eric Sauer says that while his organization was unsuccessful in removing AB-5 from the trucking industry, “California and the legislation’s union sponsors had to take the position that the state’s 70,000 owner-operators had a right to conduct business in the state in order to overcome our arguments. This is a win for the working class entrepreneurs that make up the backbone of the state’s supply chain.”
The battle against AB-5 is not completely over just yet, though, as the Owner-Operator Independent Driver Association (OOIDA) is still in the fight.
“Everyone else is gone. Anything that affects half of our membership negatively, we’re going to push back on. And we think California has gone too far” OOIDA President Todd Spencer said regarding the CTA’s withdrawal.
Conclusion
While this is a nail in the coffin against California truckers trying to maintain the “owner-operator under Authority” business model in the Golden State, it is not the final nail. The trucking industry still has a few ways to work around the exemption, namely, it could still do what gig economy companies such as DoorDash and Uber did, which is to get a Proposition on the ballot to carve an exemption for the trucking industry. Otherwise, it is still possible that the Supreme Court may hear the OOIDA’s case after this round of legal battles, after it declined the previous time.
California has had this law apply to truckers for two years to the day this article is published, however, there have been no recorded cases of the law being enforced against a trucking company yet. The nuclear option would be to stop performing services in California and let the state be a model of what the nation would look like should the United States Department of Labor adopt a similar form of regulation, but it would require significant organization for a trucker strike to happen.
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
We have financing options for trailers, semi-trucks, commercial trucks, and small businesses. We have great rates, low down payments, and flexible monthly payments regardless of credit history.
Learn more about Trailer Financing.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.
