The Roemer Report
This Month's Roemer Report
Truckers To Take California AB5 Independence Fight To The Supreme Court
Thanks to a federal judge, a legal bout of epic proportions is going into later rounds as California truckers continue the fight for independence this Fourth of July. According to an announcement from the law firm Scopelitis, Garvin, Light, Hanson & Feary, Heavy Duty Trucking reported that the United States Court of Appeals for the Ninth Circuit granted the California Trucking Association’s (CTA) request for a stay of Assembly Bill 5 (AB5) mandate which suspends enforcement and provides the time for CTA to petition the United States Supreme Court.
Seeking Review And Relief
CTA is seeking the review of the appellate court’s ruling (CTA v. Bonta) whether or not the restrictive “ABC” employment test required by AB5 is preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAA). CTA has challenged AB5 on the grounds that the law is pre-empted by the supremacy and commerce clauses of the U.S. Constitution and also is in direct conflict with the Federal Motor Carrier Safety Act and the Federal Aviation Administration Authorization Act of 1994. A critical legal precedent relative to this case, because the FAAAA bans states from enacting laws that affect a motor carrier's prices, routes and services. CTA (and their legal team) is asserting AB5 does exactly that and therefore cannot stand.
AB5, effective on January 1, 2020, codified a previous California Supreme Court decision into state law setting forth an “ABC” test to determine if a worker is an employee or an independent contractor. The ABC test defines a worker is an employee, unless it is certified that:
A) The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact
B) The worker performs work that is outside the usual course of the hiring entity’s business; and
C) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.
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The Roemer Report Archives
As you review these archived editions of the Roemer Report, it is remarkable to see how many major ‘hot button’ issues from way back in the day have been the topics of discussion over the many years and right up to the present day. Fuel costs, Insurance, Equipment innovations, Hours of service, the driver shortage (!) safety regulations, traffic bottlenecks and more. The more things change, the more they really do seem to stay the same!
We hope you will enjoy these historical editions of the Roemer Report. Long known as “The Kiplinger Letter of Trucking” our report has been proudly produced by the Trucking Insurance Experts at Roemer Insurance for over 35 years. Roemer Insurance is the parent company of InsureMyRig and The Roemer Report has always been our way of showing our trucking clients that we support their vital industry and that we really do know the difference between a fifth wheel and a steering wheel. Enjoy!