In the eleventh hour, on New Year’s Eve, the California Trucking Association (CTA) was successful in securing a temporary restraining order (TRO) against the implementation of AB5 as it relates to trucking.
Since a TRO is by its nature temporary, the CTA sought and was victorious in obtaining a preliminary injunction preventing the law’s application to motor carriers until the case can be heard fully. In his ruling on the preliminary injunction, US Federal District Judge Roger Benitez stated:
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The State of California is undaunted by the judge’s slap. The state’s Attorney General, Xavier Becerra, has filed an appeal asking the Ninth Circuit Court of Appeals to reverse the decision.
If you recall back when the Port of Los Angeles tried to enact a rule enabling only employee drivers access to their port facility and were sued by the American Trucking Associations (ATA), the Ninth Circuit Court of Appeals ruled in favor of the ATA.
While we feel confident in our case and precedent, one never knows how the courts will decide. We will keep you posted.