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Trucking Industry Exempted From AB-5 Jurisdiction

In a shocking move, the trucking industry won the injunction against the new AB-5 bill passed by the California legislation. The bill had sparked many controversies in the trucking sector of the entire country. The California Trucking Association (CTA) received a judgment in their favor from the California district court. Judge Roger Benitez​ wrote "There is little question that the State of California has encroached on Congress’ territory by eliminating motor carriers’ choice to use independent contractor drivers, a choice at the very heart of interstate trucking," in his judgment

This is considered as a win to the trucking association across the country. AB-5 exempts all individual contractors from employee rights in the state of California. The law affects many freelancers within the state. The injunction will remain in effect until the court finishes considering the AB-5 bill. Truckers across the nation had expressed solidarity towards the fellow truckers in California. The bill was also presenting difficulties to truckers passing through the district of California.

All truckers within the country was observing the lawsuit. California State Assembly is facing heat from all over the country. The status of truckers passing through the state of California is safe with this injunction.

Future of Trucking

The fact that this is a temporary measure poses some threat to the safety of the trucking industry in California. However, the judge cited many merits in the suit filed by the CTA. The truckers of the state will have a definitive picture of the future once the final verdict is out. A huge chunk of the trucking industry still relies on independent contractors. The timeline for the final hearing at the court is not specified. The injunction, however, can be considered as a good precedent for getting a positive verdict from the court.

The CTA lawyers put up a powerful argument. The lawyers took the fight to the FAAAA (Federal Aviation Administration Authorisation Act). The argument posits the preemption of the FAAAA for AB-5. The risk for the trucking industry is too high. Government enforcement actions can take effect is the bill passes. All trucking industry affiliates are standing in unity against the new law.

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