California Trucking Association withdraws from AB5 legal battle

The CTA's decision comes after a federal district court rejected a new request from the association

After a long legal battle against AB5, the California Trucking Association (CTA) has decided to withdraw from this controversy in the transportation sector. The AB5 law, which came into effect in 2020, aimed to change the classification of workers and has since been the subject of intense disputes, particularly between independent truckers and supporters of the law.

Eric Sauer, CEO of the CTA, announced in a statement that, after four and a half years of litigation, the association has chosen not to continue appealing the recent decision of a federal district court. The court had rejected CTA’s request for a preliminary injunction to block the implementation of the law at the federal level. Additionally, the Ninth Circuit Court of Appeals also denied CTA’s effort to prevent the law’s enforcement. “This is a victory for the working-class entrepreneurs who are the backbone of the state’s supply chain,” Sauer stated in the announcement.

OOIDA continues the fight against AB5

The CTA’s decision comes after a federal district court rejected a new request from the association for a preliminary injunction and a trial on the merits of the case on March 15. However, the Owner-Operator Independent Drivers Association (OOIDA) has decided to continue with its own appeal. Todd Spencer, OOIDA’s president, stated that California has gone too far regarding the welfare and work of the association’s members, so they will continue fighting.

In its appeal brief dated August 5, OOIDA argued that the ABC test under AB5, which determines whether a worker is an independent contractor, effectively prohibits a sector of small trucking businesses from operating in California. OOIDA contends that the law prevents owner-operators from working as independent contractors for carriers, as their work falls within the carriers’ usual course of business.

Meanwhile, California regulators have yet to attempt to enforce the law or clarify its specific interpretation. The CTA had previously argued that AB5 would force owner-operators to become employees of carriers instead of operating as independent contractors.

As long as OOIDA persists in challenging what it views as a negative impact on the freight transportation sector and independent drivers in California, the dispute continues.