Trucking loses latest attempt to block AB 5
Summary
OOIDA said in a statement Monday morning that it “disagrees with Judge Benitezs ruling and the reasoning behind it and is exploring all options moving forward – including an appeal." Transportation law firm Scopelitis noted that it expects CTA to appeal Benitezs decision, but "there will be no relief from AB 5 in the meantime." The [F4A] does not dictate that truck drivers must be classified as independent contractors or that drivers are not subject to state wage and hour laws.” CTA and OOIDA also claimed implied preemption because it creates a “patchwork quilt of national regulations.” Benitez disagreed, noting that the “particular regulations about which Congress is concerned are those addressing carrier prices, routes, and services. On one claim, they alleged that the employee classifications targeting carriers and owner-operators were motivated by animus, based on comments by AB 5 legislative sponsor Assemblywoman Lorena Gonzalez. The groups highlighted a statement she made on the Assembly floor on Sept. 11, 2019, that one purpose of AB 5 was to “get rid of an outdated broker model that allows companies to basically make money and set rates for people that they call independent contractors.” The groups also made note of a Tweet from Gonzalez on Nov. 21, 2019, about how AB 5 would permit a trucker to “work as an independent contractor for a construction firm,” while requiring an owner-operator to “work as an employee for a trucking company,” referencing an exemption for construction industry drivers that Benitez said is set to expire at the end of 2024.