Major trucking companies’ use of owner-operators in California has been thrown into legal limbo after the U.S. Court of Appeals for the Ninth Circuit recently ruled 2-1 against the California Trucking Association (CTA) in a closely watched case with far-reaching ramifications. The three-judge panel said CTA was unlikely to succeed on the merits with respect to its claim that AB-5, the California legislature’s imposition of a restrictive ABC test, is preempted by the Federal Aviation Administration Authorization Act of 1994 (F4A).
Source: logistics Mgmt