The California Trucking Associations has thrown up a Hail Mary pass in hopes the U.S. Supreme Court will protect independent truckers from having their livelihoods upended.
The Golden State’s legislature passed a wrong-headed bill that targets so-called “gig workers” who exercise their freedom and take job opportunities as they see fit. California’s lawmakers reportedly took issue with the fact collecting taxes from many 1099 workers was problematic. In a move to largely eradicate the freedom of self-employment, Gov. Gavin Newsom signed the now-notorious AB5 bill into law. Although the California governor faces a recall, AB5 has had a chilling effect on self-employed people across sectors, particularly owner-operator truck drivers.
“In California, more than 70,000 owner-operators choose to work independently because of the freedom, flexibility, and business growth potential that business model provides,” California Trucking Association (CTA) President Shawn Yadon reportedly said. “These small-business entrepreneurs face irreparable damage should AB 5 be allowed to exist as it relates to the trucking industry.”
The CTA initially made strides in the court system after filing a class-action lawsuit. The organization was able to secure an injunction that delayed the anti-trucker rules from taking effect. In April, three judges from the so-called “Nutty 9th District” ruled against the CTA. After appealing to a larger judge panel, the court upheld the 2-1 decision. A final appeal to the nation’s highest court may seem like a long shot, but the case is not without merit.
In 1994, Congress passed the Federal Aviation Administration Authorization Act that prohibits states from interfering with owner-operators who haul freight across state lines. The CTA appears to have a winning claim because federal law typically overrides state laws, particularly when the case involves interstate activities.
“The 9th Circuit’s holding should not stand. It creates a conflict in the circuits. It rests on a construction of the Federal Aviation Administration Authorization Act of 1994 that departs both from the statutory language and from this court’s approach,” the CTA reportedly stated. “It will cause dis-uniformity in national commerce while disrupting the operations both of motor carriers and of owner-operators. And it interferes with the routes, services, and prices of motor carriers — just what Congress meant the FAAAA to prevent.”
The 9th Circuit has a long and troubling track record of siding with government overreach instead of working Americans. Many believe the CTA would have already prevailed based on the merits of the case in another arena. But the inherent problem facing thousands of independent West Coast truck drivers is that the U.S. Supreme Court agrees to hear only about 2 percent of all appeals.
Should the high court deny the CTA request, owner-operators could be forced to take hourly wages or mileage rates offered by corporations, relocate, or petition to have AB5 overturned in the next election. Companies such as Uber and Lyft worked together to get Prop 22 on the ballot and succeeded at carving out exemptions to AB5.
Sources: ttnews.com, autobala.com
No one did anything too stop carb from pushing there illegal regulations when they forced drivers to buy new equipment plagued with issues and drowned them in debt and shot prices to astronomical heights for any one living in the state. Now a regulation that would effectively stop carriers from making employees 1099 and give them benefits is the one they want to stop. I hope they fail and have to eat it
So when are California’s going to WISE up ??? LEAVE !!! you don’t need California. Work elsewhere. I DON’T run California, NJ.,NY.,CT.,MA.,ME.,NH.,RI.,CO. The freight is better everywhere else. I LEAVE my truck in another state
California’s can stay in California. We don’t need them moving to other states so they can vote for democrats and ruin other states too.
I’m not into games, put up like everyone else or shut up and shut down, NO EXEMPTIONS ! If you don’t like that, hitting them where it hurts by striking, taxation without representation is the only way I see anything changes with these greedy politicians, it’s not just California
Yup where’s the Jimmy Hoffa of the new era???
The Owner Op/ Independant Contractor business model is questionable. For those that lease their truck to a company this is especially true. A true independent contractor can have more than 1 lease and make their own schedule. You may have noticed the small change in your 1099. Many companies are now showing your earnings as RENT. Technically, it should be recognized as COMMISSION. Some of is receive 2 1099; 1 for RENT and 1 for Sign On bonus.
Also if you are reimbursed for purchases like tolls, or coolant for a Heat In Transit load, make a note, in other industries reimbursements have to be billed back; ex Lawyer Expenses, Seminar Expenses, DOT Physicals.
I really expect the IRS to get involved soon. The IRS attacked Tipped Employees during Bush 1.