The California Trucking Association (CTA) was joined by the Owner Operator Independent Driver Association (OOIDA) in its lawsuit against California law AB5.
As a refresher, AB5 seeks to squash entrepreneurialism by reclassifying all independent truck drivers as employees. The law was passed by the California legislature in 2019, but before it could be implemented, the CTA was successful in securing an injunction in December 2019 in US District Court. The case was appealed to the US Ninth Circuit who ruled in favor of the State of California, but the injunction remained in place until June 2022 when the US Supreme Court opted not to hear the case presuming there were avenues for independent contractors to remain independent.
The CTA, along with OOIDA, refiled the case in the US District Court. Judge Roger Benitez (who ruled on the original CTA case) heard oral arguments last month. The CTA focused on AB5’s violations of the Federal Aviation Administration Authorization Act (F4A) while OOIDA focused on its violations of the Commerce Clause and the Equal Protection Clause of the US Constitution.
We will, of course, keep you updated.