Judge Roger T. Benitez of the US District Court for the Southern District of California declined an appeal of a newly-passed California law that makes it more difficult for companies to designate employees as being eligible for independent contractor status.
The lawsuit appealing the constitutionality of the law was brought by the California Trucking Association and Owner-Operator Independent Drivers Association. The ruling by the Judge means the trucking industry as a whole in California could potentially become much more expensive to utilize and develop in the loss of employment of thousands of California truckers.
Excerpt from news.bloomberglaw.com
A federal judge declined to block a California law that makes it harder to classify freight hauling drivers as independent contractors instead of employees.
Judge Roger T. Benitez of the US District Court for the Southern District of California rejected the California Trucking Association and Owner-Operator Independent Drivers Association motions for a new injunction to block the state law known as AB 5. The law, which codified a 2018 California Supreme Court ruling, was enacted to address the widespread problem of classifying certain workers as independent contractors who usually lack benefits such as workers’ compensation, unemployment insurance, etc…