Truckers tell Ninth Circuit that California law unfairly bans independent contractor drivers

Gavin Newsom is using his office, and the Democrats are using their legislative offices to support, promote and act as agents of the monopolistic unions.  Literally, they are trying to end Hispanic, black and women owned trucking companies to go out of business.

“Truckers, especially those that are based outside of the state but drive into California for work, are avoiding taking their freight to California because they fear the long arm of the law’s enforcement of Assembly Bill 5, said Paul Cullen Jr., of The Cullen Law Firm, attorney for the Owner-Operator Independent Drivers Association.

The bill, which went into effect in 2020, entitles people working as independent contractors for companies to be reclassified as employees, making them eligible for minimum wage, overtime and other standard protections granted to employees.

But association truckers say the law means they’ll have to abandon their independent business model and contractual relationships.

The biggest loser is the consumer.  Since firms are forced to unionize their truckers—and out of State truckers do not want to be taken over or closed down, they avoid California.  This adds to the cost of transportation.  The truckers?  They are forced to pay bribes to unions and work only when the union allows.  This is called socialism—the Party of Newsom and the Democrats.

Truckers tell Ninth Circuit that California law unfairly bans independent contractor drivers

The state argues that trucking companies are just trying to get out of having to classify their workers at employees.

Sam Ribakoff, Courthousenews,  4/9/25  https://www.courthousenews.com/truckers-tell-ninth-circuit-that-california-law-unfairly-bans-independent-contractor-drivers/

PASADENA, Calif. (CN) — Hoping to reopen their suit against a California law regulating classification of independent contractors, a trade association of independent owner-operator truckers argued to a Ninth Circuit panel on Wednesday that the law effectively outlaws them from driving and doing business in the state. 

Truckers, especially those that are based outside of the state but drive into California for work, are avoiding taking their freight to California because they fear the long arm of the law’s enforcement of Assembly Bill 5, said Paul Cullen Jr., of The Cullen Law Firm, attorney for the Owner-Operator Independent Drivers Association.

The bill, which went into effect in 2020, entitles people working as independent contractors for companies to be reclassified as employees, making them eligible for minimum wage, overtime and other standard protections granted to employees.

But association truckers say the law means they’ll have to abandon their independent business model and contractual relationships.

Aside from interfering with their businesses as independent contractors, the association says the law also violates the dormant commerce clause and the Federal Aviation Administration Authorization Act of 1994, which allows the federal government to prevent states from interfering with interstate transportation.

Though a business-to-business exemption is available under the law, the association says members can’t apply because they have to follow contradictory federal law that says trucking companies need to have exclusive control over trucks involved in interstate commerce.

“One of the requirements of the business-to-business exemption is that the worker be free from the control of the business. Leased owner-operators in inter-state commerce must comply with federal regulations called the Truth In Leasing regulations which require the motor carrier to have exclusive possession and control of the vehicle and the operation of that vehicle in inter-state commerce. Whatever the scope of that control is it can’t be squared with the B2B requirement that the worker be free from control. It’s irreconcilable,” Cullen said. 

Trucking companies are just trying to get out of having to classify independent contractors and gig workers as employees, the state argued in their appeal of a lower court’s decision that their claims are preempted by the Federal Aviation Administration Authorization Act and don’t contradict with the dormant commerce clause.

“I think what my friend on the other side objects to about that is not so much that it’s a categorical bar to their operation in the state, it’s that classification as employees in his view will lead to increased business compliance cost,” said Samuel Harbourt, an attorney for California’s Department of Justice. 

Even if it’s true that the law would force owner-operator truckers to leave California’s market, that kind of burden doesn’t give them standing to show they’re substantially burdened by the law, he added. 

Although he wasn’t sure if there are records establishing that truckers who own and operate their own vehicle like those in the association have received business-to-business exemptions, the state disagrees with the truckers’ argument that they’re barred from being granted the exemption, Harbourt said. 

That elicited a chuckle from U.S. Circuit Judge Consuelo Callahan. 

“If no one’s ever gotten it, but it’s still possible, when you say no one’s ever gotten it, what are we looking at here?” the Goerge W. Bush appointee asked. 

Harbourt reiterated that he wasn’t sure if nobody has ever received the exemption, but a prior decision by the court has established that it’s possible for some owner-operators to claim the exemption. But, the exemption was created to be a demanding standard, he added.

The truckers’ argument that the law bars owner-operator truckers from working in the state is not true, it just requires they be classified as employees, Harbourt said. 

The International Brotherhood of Teamsters agrees with the state’s arguments that owner-operators can both follow state and federal law if they either make them employees where they are paid for their labor and maintenance for their trucks, or truckers can obtain their own operating authority under the Federal Motor Carrier Safety Administration and fall under the business-to-business exemption and become “truly independent,” said Robin Tholin of Altshuler Berzon, an attorney for the Teamsters.  

“What I’m hearing on that point is that they technically can, but no one knows of anyone that’s qualified. Is that a correct characterization?” Callahan said. 

The exemption isn’t a thing that’s applied for and received, Tholin said, it’s exempted to drivers who need it, including owner-operators who have their own businesses, Tholin said. 

“It’s quite narrow however,” Callahan said.

It is, Tholin said, but it doesn’t bar the entire industry. 

“The industry as OOIDA defines it incorporates an independent contractor standard. They define the prohibited leased owner-operators as independent contractor owner-operators, but of course that’s a legal analysis and the state is permitted to regulate in labor law who qualifies. Those drivers can still own their own trucks and can still drive as employees,” she said. 

U.S. Circuit Judges Roopali Desai and Ana de Alba, both Joe Biden appointees, rounded out the three-judge panel. 

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