Supreme Court Denies Review of AB5
California’s AB5 law severely restricting the use of independent contractors will soon be enforced against the trucking industry after the U.S. Supreme Court declined to hear the California Trucking Association’s appeal.
In an end-of-term orders list released June 30, the Supreme Court denied review of the 9th Circuit’s reversal of the injunction against enforcement of California’s AB 5 against the trucking industry. As a result, an injunction that has been in place for roughly two years will be lifted quickly and complying with AB5 will be a reality for trucking companies in California, according to the transportation attorneys at Scopelitis, Garvin, Light, Hanson & Feary. (Courtesy of Heavy Duty Trucking).
In many ways, the make-up of trucking companies in California may need to change, as most companies will be unable to meet the restrictions of the ABC test necessary in order to hire owner-operators. This could lead to increased cases of misclassification and subject companies to penalties and fines retroactive to 2020.
What that means for Colorado companies who send owner operators into California is not yet known, nor is there any current legal guidance.
For more information, including a list of Frequently Asked Questions, visit the California Trucking Association’s site HERE.
CMCA will keep you up-to-date as we hear more concrete news on how this may affect our members. | 
RMRSR Returns!
