We previously wrote about the California Trucking Association (“CTA”) petitioning the U.S. Supreme Court to review CTA’s AB5 lawsuit against the State of California. CTA’s petition requested that the Supreme Court overturn the 9th Circuit Court of Appeals ruling which would enforce AB5 against the transportation industry.
On June 30, 2022, the Supreme Court denied the CTA’s petition and will not hear the case. This decision to deny review means that the 9th Circuit’s ruling stands and the injunction preventing AB5 will be lifted this month. As a result, California can start to enforce AB5 against the transportation industry.
The Supreme Court’s decision will have a significant impact on the trucking industry and the use of owner operators. Motor carrier companies and owner operators will need to reevaluate their business models to adapt to this ruling and mitigate their risks. Alternatives may include utilizing an employee-based model, complying with AB5’s business-to-business exemption, or establishing a property brokerage.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500 for legal assistance near you. (Photo Credit depositphoto.com.)