U.S. Federal Court Grants the Trucking Industry a Temporary Restraining Order from AB5
On December 31, 2019, the U.S. Southern District Court granted the California Trucking Association’s request for a temporary restraining order (“TRO”). The Court Order prevents the state’s enforcement of Assembly Bill 5 (“AB-5”) until the court makes a decision on the CTA’s motion for a preliminary injunction, which is scheduled for a hearing on January 13, 2020.
The Court ruled that a TRO was warranted because CTA met their burden to show “for purposes of emergency relief… (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.”
The Court determined that the CTA “has shown that AB-5’s Prong B is likely preempted by the (Federal Aviation Administration Authorization Act) because AB-5 effectively mandates that motor carriers treat owner-operators as employees, rather than as the independent contractors that they are.”
This order is a positive sign for CTA’s AB-5 lawsuit and the trucking industry in its fight to preserve the owner-operator model. Given this challenge by the CTA, we will likely see more industries challenge AB5 soon. Contact the experienced attorneys at Chauvel & Glatt to learn how they can help your business protect itself from AB-5 regulations.
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