Based on a complaint filed by the California Trucking Association, a United States District Court Judge from the California Southern District Court issued a TRO which blocks the enforcement of Assembly Bill 5. See attached decision. AB-5, which was set to take effect on January 1, 2020, provides a mandatory test for determining whether a person driving or hauling freight for another contracting person or entity is an independent contractor or an employee for all purposes under the California Labor Code, the Industrial Welfare Commission wage orders, and the Unemployment Insurance Code. See Cal. Labor Code § 2750.3(a)(1). Under AB-5’s test (the “ABC test”), an owner-operator is presumed to be an employee unless the motor carrier establishes each of three requirements. The TRO was granted on the basis of FAAAA preemption given that as applied the new law essentially forces independent contractors to become employees of the carriers with whom they contract. In addition, another federal court has enjoined AB51 ( which seeks to prohibit arbitration of certain types of labor related claims ).