In a Blow to the Transportation Industry, Ninth Circuit Overturns AB 5 Injunction

In early January 2020, the California Trucking Association (CTA) struck an early victory for the industry by successfully enjoining enforcement of California’s AB 5, which codified the so-called “ABC Test” for determining whether workers are lawfully considered independent contractors. On April 28, 2021, however, the Ninth Circuit reversed the district court’s injunction order, finding in a split decision that the court had abused its discretion. A request for en banc review and a petition for certiorari to the Supreme Court of the United States are likely, but for now, motor carriers operating in the Golden State face a sea change.