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California state court rules AB5 doesn't apply to trucking, LA to appeal

January 09, 2020 / Matt Leonard

Assembly Bill 5 (AB5) does not apply to the trucking industry in California, according to a ruling handed down Wednesday by the Superior Court of the State of California. Judge William Highberger concluded the legislation is preempted by the Federal Aviation Administration Authorization Act (FAAAA) of 1994, according to documents the firm representing the defendant in the case provided to Supply Chain Dive. The Los Angeles City Attorney’s office accused NFI Industries and its subsidiaries of misclassification two years ago. When AB5 passed the state legislature in September, the prosecution argued the legislation supported their case. The defense argued the federal regulations preempted the legislation.