70,000 Truck Owner-Operators in California May Be Forced to Stop Driving in One Week Due to New State Law
- 70,000 Truck Owner-Operators in California May Be Forced to Stop Driving in One Week Due to New State Law
by Mary Villareal, https://www.naturalnews.com/Index.html
(Natural News) A Supreme Court decision may force over 70,000 truck owner-operators in California to stop driving, creating another choke point in the already stressed West Coast logistics networks.
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The AB5 law restricts the use of independent contractors and will soon be enforced against the trucking industry after the court declined to hear their appeal. The California Trucking Association said in a statement that gasoline has been poured on the fire that is the ongoing supply chain crisis, and the decision by the Supreme Court could deny a judicial review of a lower court ruling.
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In an end-of-term orders list released in June, the Supreme Court denied the review of the 9th Circuit’s reversal of the injunction against enforcement of the AB5, which is against the state’s trucking industry. This injunction, which has been in place for over two years, will be lifted quickly.
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The group said that in addition to the direct impact on the owner-operators who only have seven days to cease operations of their long-standing businesses, the impact of taking tens to thousands of truck drivers off the road can have devastating repercussions on the already fragile supply chain – which increases costs and worsens inflation.
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The association also asked the Supreme Court for a review of a case that challenged California’s Assembly Bill 5, which is a law that sets out three tests to determine whether or not a worker is an employee entitled to job benefits or an independent contractor who isn’t. The trucking industry relies on contractors and has fought for an exemption from state regulations because of federal laws.
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