California Trucking Association Ends AB 5 Fight, OOIDA Will Appeal

The California Trucking Association (CTA) has officially dropped its long-running legal battle against California's AB 5 law, which reclassifies independent truck drivers as employees. Despite this, the Owner-Operator Independent Drivers Association (OOIDA) remains in the fight, continuing their appeal to challenge the law that could drastically reshape the trucking industry.

Key Takeaways:

• CTA Withdraws: After a four-and-a-half-year struggle, the CTA has ceased its efforts to appeal the denial of a federal preemption against AB 5.
• OOIDA Persists: OOIDA, representing many independent drivers, is pushing forward with its appeal, arguing that AB 5 unfairly targets small business truckers.
• Impact on Drivers: The AB 5 law uses the “ABC test,” which effectively bars owner-operators from working as independent contractors under most conditions, potentially forcing them to become motor carrier employees.

AB 5 Explained

This law uses a three-part test to determine if a worker is an employee or contractor. The kicker? It says a contractor must do work "outside the usual course" of the hiring company's business. For truckers, that's a problem.

OOIDA's Stand

Todd Spencer, OOIDA President, says: "We're the last one standing. Everyone else is gone." They argue AB 5, "effectively prohibits an entire sector of small business truckers from operating in California."

Despite the setback, OOIDA still plans to continue their appeals, so this fight is far from over.

Source: Transport Topics