AB5…A DOGGED LAW
The California Trucking Association (CTA) was successful in getting a temporary restraining order (TRO) against AB5, the California law that, in essence, banned the use of independent contractors in most industries in the state effective January 1,2020.
The CTA argued in federal court on December 31, 2019 (talk about the 11th hour) that AB5’s application in the trucking industry is preempted by federal law FAAAA, which declares that states, counties or municipalities cannot issue laws or regulations which interfere with interstate commerce.
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US District Judge Roger Benitez agreed!
While the TRO is a temporary solution, it is a hopeful sign. In the judge’s ruling, he stated the CTA “carried their burden for purposes of emergency relief to show (1) that they are likely to succeed on the merits, (2) likely to suffer irreparable harm in the absence of relief, (3) that the balance of equities tips in their favor, and (4) that their requested relief is in the public interest.”
We are hopefully optimistic the same will hold true when we have our day in court later this month.