The NAM filed an amicus brief in support of the California Trucking Associations’ cert petition to the U.S. Supreme Court, asking the Court to hold that California’s Assembly Bill 5 (AB-5)—which radically changed worker classification in the State and effectively requires all independent contractor drivers of motor carriers operating in California to be classified as employees—is preempted by federal law. Passed in 2019, AB-5 adopted the so-called "ABC test" for determining whether a given worker is an independent contractor or statutory employee under the California Labor Code. By design, the ABC test results in many more workers being reclassified as employees for wage and hour laws and other purposes.
Under the Federal Aviation Administration Authorization Act (FAAAA), however, state laws “related to a price, route, or service of any motor carrier . . . with respect to the transportation of property,” are preempted. A federal district accordingly enjoined enforcement of AB-5 against motor carriers, but the Ninth Circuit reversed, deeming AB-5 a "generally applicable labor law," not subject to FAAAA preemption.
The NAM joined a coalition of manufacturers, distributors, wholesalers, retailers, and receivers of goods shipped through interstate commerce in filing an amicus brief in support of Supreme Court review, highlighting the significant burden AB-5 places on interstate commerce and the American economy. Our brief argues that AB-5 will harm the competitive, efficient, and flexible trucking services that Congress afforded U.S. businesses by limiting state interference in the trucking market. The ripple effect from this disruption will harm consumers and the national economy, which are already grappling with delivery delays, product shortages, and empty store shelves caused by the pandemic.
Unfortunately, on June 30, 2022, after calling for the views of the Solicitor General, the Court denied cert.