A large convoy head east bound on the 40 freeway as they head towards the nation's capital to protest against coronavirus disease (COVID-19) vaccine mandates, Daggett, California, U.S. February 23, 2022. REUTERS/Gene Blevins
- Lawsuit claimed state law would devastate trucking industry
- The 2019 law says most workers are employees and not independent contractors
- Trucking firms rely on independent contractor model to cut costs
June 30 (Reuters) - The U.S. Supreme Court on Thursday declined to take up a lawsuit from a trucking industry group claiming that a California worker classification law will be devastating for the industry and should be blocked.
The justices denied a petition by the California Trucking Association claiming the 2019 California law known as AB5, which makes it more difficult for businesses to treat workers as independent contractors rather than employees, is blocked by federal regulations governing the industry.
The CTA was seeking review of a 9th U.S. Circuit Court of Appeals ruling that said AB5 is a generally applicable labor law and is not preempted by the Federal Aviation Administration Authorization Act (FAAAA). That law, which also applies to the trucking industry, prohibits states from regulating the prices, routes and services offered by trucking companies.
The CTA did not immediately respond to a request for comment. Nor did the California Attorney General's office.
The Supreme Court last October had declined to take up a separate case...
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