As expectedThe California Trucking Association has filed a setback to keep AB 5 out of the state’s trucking sector and called for a review of the recent decision of the Ninth Circuit Court of Appeals.
In a proceeding filed last week, the CTA En banc Hearing. In an en banc proceeding, the party making the appeal requires the entire circuit to be heard, with a subset of the entire circuit assigned.
The en banc request was submitted last week.
In submission, the CTA returns to the key discussions made in its efforts to move the Independent Contracting Act AB5 away from the state truck market. From 2020 to 2021, these discussions were successful, and a temporary injunction was issued by a lower court earlier last year, governing and influencing relationships with independent contractors in other areas. Nevertheless, the implementation of AB5 in trucking has been banned. (Independent gig drivers like Uber from under AB5 Passing the last election day of Proposal 22.. )
However, the state of California persuaded the Ninth Circuit Court of Appeals, which was split earlier this month, to overturn the injunction in an appeal in which oral arguments were held in early September.
The injunction is still in effect and is currently awaiting the full decision of the Ninth Circuit Court of Appeals on whether to accept the en banc petition.
The problematic part of AB5 is the so-called B prong. Under the B-prong, a worker hired to perform a core function of what the company does, such as a truck company that hires an independent owner operator of the truck, should be considered an employee. is. For example, a shipping company that employs an outside accountant is not a B-prong.
The district court in early 2020 agreed with the CTA’s allegation that AB 5 was inconsistent with Federal Aviation Administration-approved law. This is a 1994 law claiming that the CTA blocked AB5 due to its potential impact on “fee, route, service”. State laws that affect these three parts of the market are excluded by FAAAA. However, the Court of Appeals did not agree to overturn the injunction.
The CTA’s en banc request reiterates the view that AB5 is inconsistent with FAAAA. Citing previous case law, the association’s lawyers said in a previous court that “FAAAA (and almost the same wording of the Airline Deregulation Act) directly or indirectly affects rates, routes, or services in general. We have determined that it takes precedence over state law, including applicable law. ” AB-5 takes precedence under that standard. “
The association’s filings also state that other legal decisions involving the American Trucking Associations “clearly give priority to the ban on the use of independent contractors by car carriers.”
The CTA’s appeal quotes a complaint from Judge Bennett of the Court of Appeals of the three judges, and maintaining the owner-operator model is “important … it’s abundant time during a lack of business. Because it allows you to zoom in and out. ” Bennett was also reported to have stated that AB 5 “requires all car carriers to reclassify all independent contractor drivers as employee drivers.”
If that happened, the CTA quoted Judge Bennett as saying, “We will eliminate the flexibility of car carriers to accommodate fluctuations in supply and demand.” Judge Bennett’s allegations are frequently cited in CTA filings.
The Court of Appeals has determined that AB 5 is a “general application” and does not focus solely on trucking, but “results in the relationship between car carriers and consumers.” did.
The California truck sector has consistently argued that AB5 is not a common application. Numerous exemptions granted to a particular industry, either in the original or subsequent legislation partially passed to address the issue of independent contractors that arose when the law first came into force. It cites and shows that it is a law that targets several industries, including trucking.
In the footnote, the CTA quotes AB 5 sponsor Lorena Gonzalez from what she said on the parliamentary floor. “And let me talk
According to the CTA submission of her statement from the transcript, she said. “We get rid of the outdated broker model that allows companies to basically make money and set prices for people called independent contractors.”
There are many cases that could be considered inconsistent with the decision of the Ninth Circuit Court of Appeals, which overturns the injunction, and “the panel’s decision creates a recognized circuit split,” wrote a CTA lawyer. ..
https://www.freightwaves.com/news/cta-asks-for-en-banc-hearing-as-it-seeks-to-keep-ab-5-out-of-californias-trucking-sector The CTA is seeking an en banc hearing as it aims to keep AB 5 away from California’s truck division.