The 9th U.S. Circuit Court of Appeals has ruled that a judge was wrong to find that California’s controversial law on worker classification is preempted by federal law governing the trucking industry, and should not have blocked it from being applied to trucking companies.
The court, in a 2-1 decision on Wednesday, said the state law, known as AB5, is a generally applicable labor law that does not directly affect the prices, routes and services offered by trucking companies, and thus is not preempted by the Federal Aviation Administration Authorization Act (FAAAA), which also applies to the trucking industry.
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