THE HEW&S FIRM 60 SECOND MONTHLY
WORK COMP NEWSLETTER:

INJUNCTION BANNING "ABC TEST" IS OVERTURNED

A federal district court in January 2020 issued a preliminary injunction disallowing the ABC Test/AB-5 to be applied in CA to trucking companies because it may interfere with federal commerce laws. However, in California Trucking Ass'n v. Bonta (2021 US App. LEXIS 12629), the 9th Circuit Court of Appeals in a split panel decision overturned the 1/2020 order and ruled that AB-5 only pertains to CA labor laws and does not impact any relevant federal laws regarding motor carriers (i.e. pricing, permitted routes, services offered, etc.). The net effect is the ABC Test applies to the trucking industry in CA, for now. An appeal is expected.

[COMMENT: A contrary decision was rendered by the 1st Circuit Court in 2016 and the 3rd Circuit Court in 2019 in which both found The ABC Test as applied to interstate commerce can violate regulations that are exclusively under federal jurisdiction. With conflicting Circuit Court decisions, the matter is ripe for the US Supreme Court.]