In the battle that rages on in California, the new AB5 law was all set and ready to be implemented on January 1, 2020. That is until a “Hail Mary” came in at the last moment on December 31, 2019! A temporary restraining order was issued for the trucking industry, giving many nervous contractors in California a sigh of relief. Though not a permanent solution, many are hopeful that this is an indication that the trucking industry may get its much-needed exemption after all.
No one quite knows what exactly will happen on January 13, 2020, when the case of the California Trucking Association against AB5, which claims that AB5 was preempted by a 1994 federal statute that prohibits states from making laws that affect the price, route or service of freight-hauling motor carriers, is heard. Many are hopeful in the assumption that since the restraining order was issued on the basis that the California Trucking Association has a legitimate case in the first place, it may be a good sign in the fight for owner-operators to continue operating in the state legally as contractors.
As the implementation of AB5 drew closer, the lawmakers in California that were initially supportive of the passing of AB5 into law in the first place were taken aback by the economic impact of the looming new law. The mass exodus and folding of contractors and companies that had been given ultimatums and limited options for legally continuing as owner-operator contractors, made those sitting high up in the California state capital finally take notice of the negative impact AB5 was going to cause. Keep an eye on the headlines starting January 13th for the news on the injunction hearing. You know I will. For those that are hoping like me that this leads to an exemption for the trucking industry, only time will tell if we will get the reprieve needed from this ill-conceived law with ill-considered consequences!