San Diego, CA — A federal appellate court has again upheld California’s employment status law (A.B. 5) amid challenges from the independent trucking industry.
On May 16, Judge Roger Benitez of the U.S. District Court for the Southern District of California ruled against the Owner-Operator Independent Drivers Association in its lawsuit against California Attorney General Rob Bonta.
OOIDA claimed that A.B. 5 – which establishes standards to determine whether a worker is an independent contractor – violates the commerce and equal protection clauses of the Constitution by imposing an excessive burden on and discriminating against interstate commerce.
“OOIDA argues that A.B. 5 functionally prohibits certain kinds of truck drivers from working in California,” Benitez writes. “However, as OOIDA implicitly concedes, A.B. 5 does not preclude out-of-state drivers from working in California; nor does it favor in-state drivers at the expense of out-of-state drivers. At worst, A.B. 5 restricts what kind of drivers may operate in California.”
A.B. 5 codified a 2018 decision by the California Supreme Court that created a three-step “ABC test” to determine whether a worker is an independent contractor. In that decision, the court ruled that workers can be classified as independent contractors if:
- They’re “free from control and direction” of the employer as it relates to performance of the work.
- Their work is performed “outside the usual course” of the hiring entity’s business.
- They engage in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity.
“This landmark law is essential in preventing the exploitation of workers misclassified as independent contractors, including in the trucking industry, and ensures a more just and equitable economy for all Californians,” Bonta said in a press release. “The California Department of Justice remains steadfast in our commitment to standing up for the rights of our workers to receive the benefits and protections to which they are legally entitled.”
In August 2022, Benitez lifted an injunction – in place since January 2020 – that had kept independent truckers in the state from being classified as independent contractors under A.B. 5.
Benitez also upheld A.B. 5 in a March 2024 ruling after OOIDA joined the California Trucking Association in a lawsuit that dated to 2019.
OOIDA continued its pursuit against the California law in the most recent legal filing.
OOIDA President Todd Spencer told the association’s Land Line magazine on May 22 he was “disappointed” by Benitez’s decision, adding that OOIDA would consider its options.
