Trucking

Withdrawal of action by three trucking industry groups to maintain AB5’s injunction

Three major industry associations have submitted Amikas Briefs for the latest legal efforts by the California Trucking Association to prevent the California AB5 Independent Contractors Act from being enforced.

The American Trucking Associations, the Western Trucking Associations, and the Owners and Operators Independent Drivers Association are all in the United States Court of Appeals for the Ninth Circuit. CTA request for an en banc hearing. The hearing aims to give the CTA an opportunity to support the continuation of the injunction that has previously kept AB5 away from the state trucking industry.

but The Court of Appeals for the Third Tribunal overturned the injunction, It stays in place while the CTA pursues further appeals.

The three briefs take different approaches to their claims. However, they primarily end up with the same basic legal logic: AB5 is a state law that affects prices, routes, and services, and the Federal Aviation License Administration Act (F4A) of 1994 is not specifically permitted. , States inconsistent with federal law. rule.

The organization’s allegation was that Congress always intended the F4A to anticipate state law that could invalidate the goals of the law. Specifically, we sought to ban three aspects of the state regulation that could affect prices, routes, or services, the trucking market specifically cited in the wording of the law.

ATA quoted a previous Supreme Court ruling that the F4A preemptive clause could easily lead to a jumble of laws, rules, and regulations that determine state services. Said that it reflected the concerns of.

This was a successful allegation made by the CTA in a lower court, which agreed and granted an injunction against AB5 in early 2020, but was eventually dismissed by the Court of Appeals.

At issue is the AB5 B-prong, where employees are workers who are hired by the company to perform tasks or services that are almost the same as the company’s normal business operations. It is what you define. It is difficult for a shipping company to hire an operator with an independent owner to carry cargo under AB5 (some analysts say it is impossible).

As WSTA outlined in its outline, “how trucking services are bid, won, and subcontracted” means that all trucking companies in these relationships say “… any legal action, company B. -You will discover that the prong has failed, it said.

WSTA, citing precedent, AB5 is an “all or nothing law” and “completely exercises the freedom of car carriers to choose whether to use an independent contractor or employee. I will hinder you. ” With that in mind, the impact on prices, routes and services is clear, WSTA said.

The efficiency of delivery seen during the pandemic is partly due to the relationship with independent contractors. “That capacity will be severely limited or prices will rise exorbitantly under the new law,” WSTA wrote.

By discussing prices, routes, and services, industry groups can anticipate scenarios for what will happen in AB5. The Court of Appeals’ decision takes into account the current balance of the market, “and allows California to fully condemn the business model used by key segments of the trucking industry,” OOODA said. AB5 “eliminates the entire category of truck carriers that rely on doing business with independent owner operators, thus overturning the intent of Congress.”

Both ATA and WSTA are aiming at the Court of Appeals’ conclusion that AB5 is a general application. The discovery of AB5 as a general law of application overturns the claim that AB5 is specifically targeted at trucking. The argument supports the claim that law affects prices, routes and services.

WSTA has attacked the AB5 proceedings as a general application and has noted many carve-outs from AB5 approved by anyone in California. Proposal 22 Referendum on Election Day, Or passed the California State Legislature. These exceptions range from still photographers to manicurists.

“There are so many exceptions to the ABC test that calling it a general law of application puts a strain on the meaning of the term,” said the WSTA brief.

The organization quoted the Court of Appeals’ ruling that AB5 “does not identify the car carrier, but only affects its ability as an employer.” The Court of Appeals noted that some businesses were exempt, but many were not.

However, given the sheer number of exemptions, WSTA claims that “it is no exaggeration to say that millions of occupations and business relationships are exempt from the law.”

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https://www.freightwaves.com/news/3-trucking-trade-groups-back-action-to-keep-ab5-injunction-in-place Withdrawal of action by three trucking industry groups to maintain AB5’s injunction

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