Prop 22 wins in California; takes Uber, Lyft and other drivers out from under AB5

Proposition 22, designed to push back against AB5 in California for app-based drivers like those at Uber or Lyft, passed comfortably in Tuesday’s election.

The vote was not close; prop 22 passed with about 58% of the vote. 

AB5 is the California law passed in the wake of the Dynamex decision that puts into law the so-called ABC test that was at the core of the Dynamex ruling in 2018. By doing so, even though there were carve-outs for a variety of professions that were added to later through...

https://s29755.pcdn.co/news/prop-22-wins-in-california-takes-uber-lyft-and-other-drivers-out-from-under-ab5

Labor Department tackles employee classification; AB5 may not be affected

In a major shift in government policy, the U.S. Department of Labor (DOL) is proposing new guidelines on employee classification, but it may not impact the question of whether truckers in California will eventually fall under the rules of AB5, that state’s law on employee classification.

The guidelines would be the first set out by the DOL under the Fair Labor and Standards Act (FLSA). It does have parallels to the ABC test in California in that it sets out a sort of checklist of questions to be...

https://www.freightwaves.com/news/labor-department-tackles-employee-classification-ab5-may-not-be-affected

Uber/Postmates driver loses court challenge to California’s AB5 law

Although AB5 remains a nonfactor — for now — in the California trucking industry, the body of legal cases on its implementation continues to grow. And so far, its backers appear to be winning.

The latest decision favoring the backers of AB5 came down last week, when a federal district court judge in California dismissed a constitutional challenge to the law brought by Uber and two drivers from food delivery service Postmates. Uber announced in July its attention to acquire Postmates.

It is the sec...

https://www.freightwaves.com/news/uber-postmates-driver-loses-court-challenge-to-californias-ab5-law

Judicial panel hears why AB5 should be kept out of California trucking sector

In a 45-minute hearing viewable online for all the trucking industry to see, a Ninth Circuit Court of Appeals panel appeared split on whether a temporary injunction barring California’s AB5 employee classification law from being enforced within the trucking industry should be allowed to stand.

The law firm of Scopelitis Garvin Light Hanson & Feary noted in a commentary after last week’s hearing, “It is always difficult to predict the outcome of a case based solely on oral argument.” But the fact...

https://s29755.pcdn.co/news/judicial-panel-hears-why-ab5-should-be-kept-out-of-california-trucking-sector

California trucking remains exempt from AB5 for now

The success of the California Trucking Association’s ongoing action means that the law continues to be unenforceable in the Golden State

Uber and Lyft are now facing a requirement to reclassify their drivers as employees under the AB5 law, but this much-publicized court case will not have any impact on the trucking industry, at least for now.

The status of independent owner-operators under California’s AB5 law remains under the jurisdiction of a preliminary restraining order handed down earlier...

https://s29755.pcdn.co/news/california-trucking-remains-exempt-from-ab5-for-now

Commentary: The power of control

roof trusses loaded with forklift

Note: In the case of Edwards v. Cardinal Trucking, Inc., the U.S. Court of Appeals for the 4th Circuit addressed whether a jury instruction was proper and whether the verdict rendered was against the weight of the evidence. However, the true “heart” of the case centered around the issue of whether Cardinal had the power of control over a co-defendant. This commentary focuses on the power of control and what factors are considered by courts when a party’s status as an independent contractor is...

https://s29755.pcdn.co/news/commentary:-the-power-of-control

CTA makes its case to keep injunction against AB5 in California

The imposition of AB5 against truck drivers in California has been blocked by court action since the start of this year, when it was to go into effect, and the California Trucking Association has spelled out its case to an appeals court on why that should continue.

The CTA, in a recent filing with the Court of Appeals for the 9th Circuit of the Federal District Court, does not lay out any significantly new arguments about why it believes — and lower courts have affirmed — that an earlier federal...

https://s29755.pcdn.co/news/cta-makes-its-case-to-keep-injunction-against-ab5-in-california