On August 9, 2021, in the case California Trucking Association (“CTA”) v. Bonta, the CTA filed a petition for a writ of certiorari with the United States Supreme Court seeking review of the U.S. 9th Circuit’s decision that California’s AB5 law is not preempted by the Federal Aviation Administration Authorization Act (“F4A”). We previously wrote about the 9th Circuit Court ruling on AB5 previously, and when the court denied rehearing as well as when the 9th Circuit granted the CTA’s petition to keep the preliminary injunction in place.
The 9th Circuit’s ruling held that AB5 and its simplistic ABC test applies to the Transportation Industry. Under the ABC test, owner operator drivers will be considered employees of the hiring company, and not independent contractors, unless they meet a strict set of criteria.
The CTA argues that F4A prohibits enforcing California’s AB5 law against the Trucking Industry because it would impact the rates, routes, and services of motor carriers. The CTA further argues that a review by the U.S. Supreme Court is necessary because the 9th Circuit’s AB5 ruling conflicts with other Circuit Court decisions. The preliminary injunction prohibiting the enforcement of AB5 against motor carriers will remain in effect until the U.S. Supreme Court either denies CTA’s petition for review, or grants review, of the petition and makes a final ruling on it.
Stay tuned for further news on this important case impacting the Transportation Industry and contact our Transportation Attorneys if you have any questions about how these ruling impact your business or about AB5.
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