Important Update Regarding California’s Ongoing AB5 Battle

04/30/2021

TCA issues important update regarding California’s ongoing AB5 battle

Alexandria, Virginia: 

On Wednesday, the U.S. Court of Appeals for the Ninth Circuit issued its ruling on a preliminary injunction regarding California’s worker classification law, known to the industry as AB5. The three-judge panel ruled 2-1, determining that AB5 is not preempted by federal law and removing the preliminary injunction that prevented the state from enforcing the law on motor carriers.

While the preliminary injunction that prevented the enforcement of AB5 will not be lifted immediately, enforcement of this bill could begin as early as mid-May.

TCA continues to support the California Trucking Association in its endeavor to fight this law in an effort to preserve the business model that is reflective of the truckload community and its business practices that have stood the test of time. We know TCA’s members have significant concerns about this law and the impact it could have on their operations, and we pledge to keep you informed as next steps are determined on this important issue.

For questions regarding this issue, please contact TCA’s government affairs department at TCA@truckload.org or by calling (703) 838-1950.