New Calif. Law Doesn’t Apply to Independent Contractor Truck Driver, Judge Rules

A California judge recently determined that independent contractor truck driver classification is not affected by a recent state law.

Assembly Bill 5, the new controversial law, codified the requirements of an earlier California Supreme Court ruling in the Dynamex case. Since the law was passed, the trucking industry has been arguing whether or not the law applies to truck drivers who are often classified as independent contractors.

Under A.B. 5, employers are required to follow what’s known as the ABC test when classifying workers as independent contractors. The ABC test makes it harder for employers to classify their workers as independent contractors.

The test applies three criteria. First, the worker must be free from the control of their employer when it comes to how they do their job. Second, the worker must complete tasks which are outside of a company’s “usual business.” Third and finally, the worker must “customarily” do their job as part of an “independent business.”

Three cases from the Los Angeles city attorney’s office were filed in January 2018 arguing that truck drivers were misclassified. The cases have been at the center of the debate at whether or not to apply A.B. 5 to the trucking industry, but a Superior Court judge recently make a ruling to end these arguments.

Los Angeles Superior Court Judge William Highberger recently ruled that the ABC test cannot be applied to the trucking industry. According to the judge, these regulations “clearly run afoul” of the Federal Aviation Administration Authorization Act which prohibits state laws in relation to the prices of transportation of property.

“After careful consideration, the court agrees with defendants that the currently operative legal requirements for determination of employee versus independent contractor status are preempted as to certain motor carriers and their drivers by an act of Congress,” the judge determined.

According to Judge Highberger, applying A.B. 5 would require significant changes in the operations of trucking companies.

“The record before the court in this case confirms the common-sense conclusion that A.B. 5 would have a substantial impact on trucking prices, routes, and services, as motor carriers in California revamp their business models either to utilize only employee drivers or attempt to satisfy the business-to-business exception,” Judge Highberger ruled.

The Independent Contractor Truck Driver Lawsuit is People of the State of California v. Cal Cartage Transportation Express LLC, et al., Case No. BC689320, in the Superior Court of the State of California for the County of Los Angeles.

Independent Contractor Truck Driver Classification

An independent contractor truck driver is also known in the industry as an owner operator. These drivers typically own their own truck and trailer and have the ability to choose their jobs. This can lead to more freedoms but is also associated with serious costs such as maintenance, insurance, licensing, and other expenses.

Some truckers have been pushing for being classified as real employees, arguing that they deserve the breaks and benefits owed to employees. Others have argued that they would make significantly less money if they were forced to be employees. The Superior Court’s recently decision has made the choice for them.

Join a Free Trucker Overtime Class Action Lawsuit Investigation

If you have worked as a contract truck driver and believe your carrier has failed to pay you minimum wage or overtime, or otherwise might not have honored a contract with you, you may qualify to file a truck driver lawsuit or class action lawsuit.

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