Major Changes for California Businesses: Ninth Circuit Reverses Injunction Blocking AB 5 in the Trucking Industry
The Ninth Circuit Court of Appeals recently reversed a district court injunction blocking the application AB 5 to the trucking industry. In CTA v. Bonta, the appeals court held that AB 5 is likely not preempted by federal trucking law, and that California can apply the rigorous “ABC” test to motor carriers within the state.
The Bonta decision may initiate a new wave of class action litigation targeting the use of independent contractors in the trucking industry. In light of the Bonta decision, it is crucial that employers understand the requirements of AB 5, including recent interpretative case law and statutory amendments. In particular, employers should evaluate whether their trucking operations qualify for the “business-to-business” exception to AB 5.
Register for our complimentary webinar to learn what this key ruling means to your company and what you should be doing now to minimize your risk.
May 6, 2021
For questions or additional information, please contact us at: email@example.com.