California’s AB5 went into effect yesterday.
It adds a new litmus test for what constitutes an employee versus an independent contractor.
The law was aimed at companies like Uber and Lyft, but several other groups of gig workers were caught in the cross fire.
One of those groups are truck drivers.
And many of them were planning on leaving California altogether.
But just hours before the law was set to go into effect, a judge gave truckers a break.
But it may be only a temporary one.
The judge was U.S. District Judge Roger Benitez.
A hearing has now been set for January 13th.
Benitez wrote, the plaintiffs “have carried their burden for purposes of emergency relief to show (1) that they are likely to succeed on the merits, (2) likely to suffer irreparable harm in the absence of relief, (3) that the balance of equities tips in their favor, and (4) that their requested relief is in the public interest.”
“AB5 threatens the livelihood of more than 70,000 independent truckers,” said CTA CEO Shawn Yadon in a statement in November. “The bill wrongfully restricts their ability to provide services as owner-operators and, therefore, runs afoul of federal law.”
But the creator of the law is still planning to fight back.
“For decades, trucking companies have profited from misclassifying drivers as independent contractors, taking away rights such as meal and rest periods and fair pay,” she wrote.
Who will ultimately win?
Read more here.