SCOTUS had denied the CTA’s petition to review California’s AB5 law
🧑⚖️ The Supreme Court has denied the California Trucking Association’s petition to review their case against AB5 - the controversial bill aimed to redefine independent contractors in the Golden State.
This move will likely end the traditional leased owner-operator business model in California, leaving many fleets scrambling to fill driver seats. The injunction will now be lifted, and trucking companies will no longer be exempt from the law within seven days. AB5 created strict criteria for a worker’s classification status, whether they can qualify as an employee or contractor.
The California Trucking Association has compared the SCOTUS decision to “pouring gasoline on a fire, which is the ongoing supply chain crisis.”
In a Truckstop.com survey conducted in light of National Take Your Pet to Work Week, independent owner-operators conveyed that taking their pet on the road with them was a key benefit in their chosen profession.
Defining “employee” and “independent contractor” has been a hot-button issue that the U.S. Department of Labor has been attempting to tackle.
Owner operators polled by Bloomberg have stated that they are feeling optimistic for the future, despite rising fuel costs and supply chain hiccups.
The FMCSA’s adjustment to its 30-minute rest break rule conflicts with two safety issues that are caused by the previous regulation.
Factoring is a viable option for owner-operators in order to focus on driving, and less on collecting.
The CTA points out that more than 70,000 drivers in the state will be sidelined by AB5, causing a huge strain on the already feathered supply chain issue in the state.