9th Circuit Overturns Truckers’ Injunction of AB 5, Not Preempted by Federal Law
CJAC Liability Reform Insider (April 29, 2021) – In a 2-1 panel
decision, the Ninth Circuit
reversed what was a major victory for the transportation
industry in January 2020 when a district court ruled that a
federal aviation law preempts enforcement of AB 5 against
interstate truckers.
AB 5, which took effect in January 2020, imposed a new, stringent
classification standard for most industries that makes it
difficult to be classified as independent contractors instead of
employees.
The Ninth Circuit reasoned that AB 5 is not preempted because it
is generally applicable, not singling out transportation workers.
Respondent California Trucking Association said it will continue
the legal fight. Appellants, California’s new Attorney General
Rob Bonta and the Teamsters praised the decision.