On appeal, the Ninth Circuit disagreed, and we provided an update on that ruling. The Ninth Circuit held that, among other reasons, AB5 was not preempted by the FAAAA because AB5 is “a generally applicable labor law that impacts the relationship between [a] motor carrier and its workforce, and does not bind, compel or otherwise freeze into place a particular price, route, or service of a motor carrier at the level of its customers[.]” Accordingly, the Ninth Circuit found that AB5 was not preempted and, by extension, the injunction against AB5’s enforcement was improper.
Appellate Court’s Most Recent Ruling When the Ninth Circuit overturned the injunctionnctio
banning the enforcement of California’s AB5, it allowed the State of California and its agencies to beginbegb gin enforcement of AB5 against motor carriers. As a matter of procedural formality and requirement, that decision was appealed to the full Ninth Circuit requesting a rehearing. That request was denied, opening the door for the decision to be appealed to the United States Supreme Court.
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In an important development, AB5 will be appealed to the Supreme Court. Because of the appeal, the NinthN n Circuit has granted a motion to keep the injunctionunct barring the enforcement of AB5 against the truckingking industry in place pending the Supreme Court’s decision on whether to hear the case. If the Supreme Court chooses to hear the case, the injunction will remain in place until the Supreme Court’s ruling on the case. If the Supreme Court declines to hear the case, the injunction will be lifted immediately allowing the State of California and its agencies to begin enforcement of AB5 against motor carriers.
ll be ppe ed t peap al, the Ninth h
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Takeaway
The Ninth Circuit’s decision reinstates the temporary injunction while the request for Supreme Court review is pending. This decision stops the state of California from enforcing AB5 at this time. While this is a temporary victory, the battle continues. The Supreme Court must agree to hear the case, and then it would rule on the merits of the dispute. If the Supreme Court decides to rule upon this case, the court’s ultimate decision will have a substantial impact on the trucking industry. We will continue to update readers as this case proceeds and developments arise.
By R. Eddie Wayland, partner with the law firm of King & Ballow
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to 5, it allowed
Ruling on
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