Judge Rules Against California AB-5 Trucking Exemption
The newest chapter in the California AB-5 saga has been released, and it is unfortunately not looking good for the owner-operator.
Details
On March 15th, California Judge Roger Benitez ruled against the California Trucking Association’s and Owner-Operator Independent Drivers Association’s (OOIDA) latest request for injunction.
Does the name sound familiar? If you have been following the AB-5 story, it should. Roger Benitez was the judge who created the injunction the first time around.
So why the change of heart? The reason Judge Benitez was against AB-5 applying to trucking the first time was because he believed it was in direct opposition of the Federal Aviation Administration Authorization Act. Because a higher court ruled that it was not, that defense was no longer available.
One new defense was saying it violated the United States Constitution Dormant Commerce Clause. Benitez disagreed. “In the end, AB5 does not offend the core constitutional principle of prohibiting purposeful discrimination against interstate commerce, and while AB5 has economic effects, the effects do not confirm purposeful discrimination against interstate commerce in the design of AB5.” Other defenses were similarly shut down.
“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,” Benitez concluded in his ruling. “If sufficient political or economic pressure can be brought to bear by Plaintiffs and their supporters, the more onerous provisions of the statute can be amended. The courts, on the other hand, are not the proper bodies for imposing legislative amendments.”
Conclusion
As you would expect, the plaintiffs in the case were not satisfied with this outcome. The OOIDA released a statement saying it “disagrees with Judge Benitez’s ruling and the reasoning behind it and is exploring all options moving forward – including an appeal.”
Chances are, truckers in California will continue fighting against California’s AB-5 law every step of the way until the Supreme Court gets involved, as it had previously declined to hear the case.
Perhaps another way the trucking industry could work around AB-5 is getting a proposition on the ballot, as companies such as Uber and Doordash did with Proposition 22.
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.
