U.S. District Court Dismisses Challenge to “ABC Test” for Determining Employment Status

(SAN DIEGO) – The Teamsters Union commends the Southern District of Califiornia, U.S. District Court for its decision to uphold Assembly Bill 5 (AB5) by dismissing California Trucking Association et al v. Bonta et al. The civil action was a direct challenge to the law, which prevents worker misclassification through the “ABC Test” for determining independent contractor status.

“This is a monumental victory for Californians. It will lead to more union organizing, the expansion of full employee rights to hundreds of thousands of workers, and greater accountability for bad actors who won’t follow the law,” said Teamsters General President Sean M. O’Brien. “We applaud U.S. District Judge Roger T. Benitez for his unassailable rationale and detailed consideration of the issues at hand in this case, and we look forward to thorough enforcement of AB5 moving forward.”

Under the California ABC Test, a worker must meet three standards to truly qualify as an independent contractor. The criteria are that a worker is free from the control and direction of the hiring entity in connection with the performance of the work, they perform work that is outside the usual course of the hiring entity’s business, and the individual has their own business or trade for the work performed. The lawsuit challenging AB5 was considered the greatest threat to the law, but it was dismissed for multiple reasons, including concerns around constitutionality.

The decision comes amid attempts by Uber, Lyft, and other tech companies to undermine the ABC Test in Massachusetts via referendum.

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at Facebook.com/teamsters.

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