AB5 Protests affecting California ports
What is AB5? California's Assembly Bill 5 makes it more difficult for a worker to be considered an independent contractor.AB5 requires companies that hire independent contractors to reclassify them as employees, but there are some exceptions in the law across industries. The majority of truck drivers in California are owner-operators, and many in this job category are concerned about their future. Many in the trucking industry, including the California Trucking Association and the Owner-Operator Independent Drivers Association, said the law would force the end of the owner-operator model in the state.

The U.S. Supreme Court announced on June 30 that it denied the California Trucking Association’s petition for a hearing over AB5.The decision to decline the trucking group’s petition means that a previous ruling from the U.S. Court of Appeals for the Ninth Circuit stands and that a preliminary injunction preventing AB5 from being enforced on motor carriers will end. According to a court order, it was set to end seven days after the Supreme Court’s decision. As a result, the injunction that has been in place for roughly two years will be lifted quickly and complying with AB5 will be a reality for trucking companies in California.

The California Trucking Association argued that AB5 was preempted by the Federal Aviation Administration Authorization Act, or F4A, which prevents states from enforcing a law or regulation related to a price, route or service of motor carriers. The law also violates the Commerce Clause of the U.S. Constitution, the California Trucking Association claimed. Representatives signed an open letter to Gov. Gavin Newsom, urging him to stop AB5.

Independent truckers snarled traffic on freeways in the Los Angeles, Long Beach and San Pedro areas this week to protest AB5. While officials said the protest did not affect operations at the Los Angeles-Long Beach port complex, the protest slowed traffic on the Vincent Thomas Bridge, 110 and 710 freeways. Hundreds also protested in Oakland. Approximately 100 members of the International Longshore and Warehouse Union Local 10 refused to cross the protest line Tuesday as owner-operators blocked the gates of the SSA terminal, which is the largest operator at the Port of Oakland, in opposition of California’s controversial independent contractor law, AB5.

This situation could affect your import and export shipments, as well as truck shipments within the state of California.

Need help with your shipments? American Cargoservice has the experience to handle import, export, or domestic shipments by air, sea, and truck, including dangerous goods! Contact us!

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