California Trucking Association Files Lawsuit Against Independent Contractor Law
The California Trucking Association, along with two independent truck drivers from California, has submitted an amended complaint to the U.S. Southern District Court. They are seeking both declaratory and injunctive relief in relation to the state’s new independent contractor legislation.
This legislation, known as Assembly Bill 5, enshrines the employment classification test established by the Dynamex Operations West Inc. v. Superior Court ruling. It was enacted by the California Legislature and signed into law by Governor Gavin Newsom on September 11.
Shawn Yadon, CEO of the CTA, stated, “AB 5 endangers the livelihoods of over 70,000 independent truckers. This law unjustly limits their ability to operate as owner-operators, violating federal laws in the process.”
The plaintiffs in the lawsuit contend that the classification criteria derived from the Dynamex ruling, as codified by AB 5, conflict with the supremacy and commerce clauses of the U.S. Constitution. They argue it also contradicts the Federal Motor Carrier Safety Act and the Federal Aviation Administration Authorization Act of 1994.
The updated classification test significantly undermines a large portion of the trucking sector, compelling them to relinquish substantial investments in clean vehicles, along with their autonomy in setting work schedules and being their own employers.
Rather than effectively addressing employee misclassification across California, AB 5 replaces a previously established multi-factor approach to determining independent contractor status with a rigid, uniform method that offers numerous exceptions for select businesses and sectors, according to the plaintiffs.
As a result of the new regulations, independent truck drivers will be compelled to transition to employee status.
