After four-and-a-half years of litigation, the California Trucking Association (CTA) has discontinued its efforts to have Assembly Bill 5 (AB 5) overturned in court. AB 5 is California state legislation which adopted the “ABC” test to determine employee classification.
The “B” prong of that test asks whether a worker “performs work that is outside the usual course of the hiring entity’s business.” For owner-operators in the trucking industry, that “B” prong usually classifies O/Os as employees, because driving a truck is part of an overlying motor carrier’s business.
CTA’s litigation effort has had its victories and losses, but now courts have ruled against CTA’s core legal arguments. The Owner-Operator Independent Drivers Association (OOIDA), which joined CTA in this legal battle, has vowed to continue the litigation.
Adopted by the California legislature in 2019, AB 5 became effective in 2020 but the state has yet to conduct any enforcement against California trucking. During the 2020 election, California voters adopted Proposition 22, which prohibited the state from enforcing AB 5 against workers in the gig economy.
In March, ICSA’s executive director Shawn Nelson was privileged to attend the annual conference for the Truckload Carriers Association (TCA). Truckload 2026 was packed with information that ICSA is committed to bringing back to its members.
Safety is a priority not just because it prevents accidents; it also helps make a carrier profitable. Every smart decision behind the wheel can save lives and reduces costs.
The Federal Motor Carrier Safety Administration issued a Final Rule, effective March 16, 2026, on non-domiciled commercial driver’s licenses – CDLs held by foreign-domiciled truck drivers operating in the U.S.