TCA Disappointed SCOTUS Will Not Review AB5 Case

ALEXANDRIA, Virginia:

The Truckload Carriers Association (TCA) is ardently disappointed that the Supreme Court of the United States has decided not to review the California Trucking Association v. Bonta case, thereby affirming California’s Assembly Bill 5 (AB5) and weakening the legal standing of the owner-operator business model in the trucking industry. TCA had hoped that the court would have recognized that AB5 violates federal regulation and will unquestionably adversely affect our national transportation network and its ability to deliver a nation.

AB5, which California passed into law in 2019, defines independent contractor status using the ABC test and will force many owner-operators to be direct motor carrier employees. The prevalence of owner-operators throughout the trucking industry has long been a tremendous source of pride for drivers and carriers alike, demonstrating a commitment to empowering entrepreneurial drivers and an excellent example of working towards the American dream.

As it stands now, the decision to not review the legal case means that the previous ruling by the U.S. Court of Appeals for the Ninth Circuit stands and the preliminary injunction that prevented the enforcement of AB5 will end.

“Abandoning any opportunity to review threats to a business model that has proven itself to be extremely successful should be viewed as an insult to an industry dedicated to serving this nation. The independent contractor should be viewed as a classic example of what this country was founded on, starting a business from the ground up and turning it into a success. The fact that these threats exist demonstrate just how out-of-touch the court is and will only serve to expand upon this country’s supply chain crisis”, said TCA President Jim Ward.

TCA will continue to monitor this issue and keep you abreast of any information as it arises.

If you have any questions, please do not hesitate to contact TCA staff.