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California District Court Dismisses Trucking Industry’s New AB5 Challenge

08 May

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Update Applicable to:Effective date
All employers in the trucking business and multi-state trucking business in CaliforniaSee details below


What happened?

On March 15, 2024, the United States District Court for the Southern District of California dismissed the trucking industry’s long-pending case challenging the statute (AB5), which aimed to stop the state from applying strict independent contractor rules to truckers.


What are the details?

The trucking industry will continue to be governed by AB5, following the U.S. Supreme Court’s decision not to review the matter in June 2022. AB5 establishes a strict “ABC” test to classify a worker as an employee or an independent contractor.

Given that AB5 has been operational for more than four years and has applied to the trucking industry since 2022, many conscientious motor carriers in California have already transitioned to alternative business models that adhere to AB5.

The dismissal of the case was conducted by the same judge who issued the initial injunction.


Business Considerations

  • Employers may consider conducting an audit of their workforce to ensure no one is misclassified.


Source References


Resources

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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