Temporary Restraining Order Issued Against California Labor Law

A federal judge in the Southern District Court of California on Dec. 31 issued a temporary restraining order against the implementation of California’s Assembly Bill 5, as it pertains to the trucking industry.

The legislation, which was set to take effect Jan. 1, potentially would reclassify tens of thousands of independent contractors and freelance employees instead of contractors. Trucking industry officials fear if the law was implemented it would destroy opportunities for drivers to own their own businesses and work as independent owner-operators in California.

On Dec. 30, Uber, delivery startup Postmates and two contractors who work for the companies sued the state, alleging the bill is unconstitutional