After refusal, CTA sues AB5 case to Supreme Court

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The California Trucks Association has brought the case to the US Supreme Court.

The Association on June 21 learned that the 9th US Circuit Court of Appeals would not reconsider the previous dismissal of the CTA’s opposition to the State Independent Contracting Contractor Act. The CTA said it would appeal the complaint to the National Supreme Court in a court filing file filed on the same day as the dismissal. The CTA also requested the Ninth Circuit Court of Appeals to leave the lower court’s delegation in favor of the CTA until the Supreme Court refused to hear the case or ruled.

A committee of three judges in the Ninth Circuit Court of Appeals overturned the previous ruling, but the CTA sought review by a committee of eleven courts. The court declined and prepared for the Supreme Court’s opposition.

The Contractor Act, widely known in the legislative Assembly Bill 5 or AB5, employs a new “ABC test” to determine if a worker should be treated as an employee for California labor law purposes. doing. The problem is, according to the CTA’s 2018 proceedings, which reached the 9th Circuit Court of Appeals last year, the test “virtually bans car carriers from using independent contractor drivers.” That is.

According to a court document filed earlier this month, car carriers and independent owners-industry associations representing operators also aim to reclassify a large number of independent contractors as employees of the company. I strongly oppose the new law.

The CTA said the Supreme Court’s review is scheduled for November 18, 2021 or earlier.

In a brief order on June 21, the Ninth Circuit Court of Appeals stated that no judge had requested a vote for a review of the previous dismissal.

The AB 5 Act was scheduled to come into force on January 1, 2020, but district court judges continued the decision, stating that the CTA had a good chance of winning the challenge to the law.

“Under the standards of this court, the continuation of delegation is clearly guaranteed,” the CTA said in a June 21 filing after the Court of Appeals for the Ninth Circuit refused to review the matter. It was. “First, the CTA’s petition presents a substantive problem with legislation with recognized circuit divisions. The Federal Aviation Authority Approval Act (FAAAA) effectively bans car carriers from state worker classifications. From hiring a truck driver as an independent contractor whether to anticipate the application to the car carrier of the regulations. “

The CTA has a good reason to stay, four members of the Supreme Court upheld the granting of a discretionary appeal in this case, and finally two of the panel of three judges from April 28. He said there was a “reasonable” possibility of overturning the -1 decision. ..

“If mandates become an issue, CTA members can restructure their businesses to comply with AB 5, risk severe civil or criminal sanctions, or purchase equipment to drive employees. We need to shut down our business because it is financially impossible to hire, “the group said. ..

The CTA added that owners and operators who served as independent contractors would need to close their small businesses to become employees or quit their jobs in California.

“While the CTA is challenging the validity of California’s widespread worker classification rules in the Supreme Court, it is necessary to continue its mission to maintain the status quo,” the CTA argued.

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