The AB-5 Legal Battle Continues
You might remember the entire debacle regarding California’s AB-5 bill, intended to prevent the misclassification of workers, and how it applies to independent owner-operators driving under the Authority of another carrier. While the case is mostly settled for trucking companies within California’s borders, the Owner-Operator Independent Drivers Association is fighting to have it not apply to specific drivers: those not stationed in California who make few deliveries there.
Details
The arguments used in the original case did not convince appellate judges to exclude Californian truckers, but the OOIDA hopes it can use the same argument to apply to truckers who are not from California, and are either making coincidental deliveries or just passing through on the way from Nevada to Oregon, for an example.
The injunction that was recently filed argues that there should be an exemption for drivers who are both not headquartered in the Golden State and spend less than 50% of their driving time within the state’s borders.
In a statement, the OOIDA exclaimed the resulting economic impact of not granting this injunction to out-of-state drivers.
“Absent an injunction, AB 5 will impact interstate trucking operations nationwide, causing carriers throughout the U.S. to reevaluate their ability to serve the country’s most important shipping market. Thousands of trucking companies will be forced to decide between changing their business model or ceasing work in California altogether. The harm resulting from these decisions will be irreparable for many, and will have a negative impact on supply chains.”
Conclusion
California has until March to respond to OOIDA’s request, and a motion hearing is set for May. As it is at this point in time, AB-5 applies to all truckers that are traveling within the state’s borders, whether that be simply picking up a drayage container at a port, or traveling along the entire length of the I-5 to reach Washington state.
Only time will tell what will become of AB-5 and how it applies to truckers in the end, but there is no doubt that the trucking industry will be fighting tooth and nail for every inch against it in court.
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