Ongoing litigation by the California Trucking Association (CTA) over the state’s Assembly Bill 5 may be affecting Southern California as clogged ports hit record numbers in Los Angeles and Long Beach.
Following the decision that AB 5 is not preempted by the Federal Aviation Administration Authorization Act, the CTA petitioned for review before the U.S. Supreme Court.
“The Ninth Circuit allowed the district court’s preliminary injunction to remain in place while the Supreme Court considered the cert petition. The injunction will remain in place until either 1) the court denies cert or 2) the court grants review and ultimately issues its decision,” Chris Shimoda told the Southern California Record. He is CTA's senior vice president of government affairs.
AB 5 enacts the “ABC” test for independent contractors. Under the test, a worker must be free from the control of the hiring entity, perform work outside of the usual course of the hiring entity’s business and be engaged in an independent trade, occupation or business in the same vein as the work performed, according to the CTA website.
“If the U.S. Supreme Court denies review, it could happen within the next month or two, which would immediately put 70,000 California independent truckers in legal limbo,” Shimoda said.
In a report by Fox News, CTA CEO Shawn Yadon said every stakeholder in the supply chain may be needed to fix the clogged ports, echoing the sentiment of other experts.
According to the report, 157 ships are currently waiting at ports in Long Beach and Los Angeles. Business Insider reports a record 100 vessels floated off coast at these ports, waiting to dock and unload.
If AB 5 takes effect in California, CTA says that carriers, brokers and shippers will have to demonstrate their business arrangements to satisfy all three parts of the “ABC” test before working.