Judge Extends Temporary Restraining Order Exempting Trucking from California AB5

Recommendation: Keep the trucking operators arrangements under this temporary exemption while you gather information this year and prepare to reclassify workers if needed.

Case context: In this case, attorneys note that most courts ruled that the extension applies before a final decision, and still, some voices argued for broader coverage. This certain balance affects industries and shapes how fleets plan compliance steps.

Impact opérationnel : Information from the docket shows the order shields a certain groupe de operators from AB5 reclassification through this tuesday, providing breathing room for fleets to adjust before deadlines. Based on filings, the order remains temporary and keeps driver relationships intact while case threads wind through the courts.

Next steps for operators: Review current driver agreements before any reclassify actions. Collect information on duties, classifications, compensation, and subcontractor status. Consult with attorneys to map compliance across industries and prepare for updates if the case moves to other courts or if the pact changes.

Most fleets can use this pause to align with state standards, update risk models, and communicate with drivers. The extension gives free leverage to operate while the information gathered now will guide the next steps as the tuesday status evolves.

What AB5 Means for Truckers and Fleets in California

Consult counsel now to confirm contractor status and secure the exemption for trucking under the current TRO. This is based on the judge’s order and helps protect owners, operatorset carriers while suits move forward. Costs could rise more than before; keep records about cost milestones and plan for a staged rollout.

AB5 relies on the ABC test for worker classification, yet the TRO provides an exemption for trucking operations for now. According à courts, carriers et owners et operators agreed that many independent transporteur arrangements should remain intact while the legal process plays out. These relationships were shaped by decades of practice and were designed to keep goods moving. The suit will test how those relationships are defined and how levels of control are applied on the road.

assemblywoman assemblywoman Rangel and other leaders in her district argued that many truckers deserved stable rules that support work in californias while the case plays out. Their position references californias approach to misclassification and the need to protect supply chains without eroding driver autonomy.

For fleets, practical steps help limit risk: map all relationships with operators, keep written agreements that reflect exonéré status, and document dispatch patterns and levels. If you work with aviation logistics partners, ensure cross-compatibility of your processes so a single policy covers both sectors, but keep trucking specifics clear. Use this moment to align with customers and brokers on agreed terms.

Be prepared for changes: the judge could narrow the exemption later; until then, the TRO still ruled in favor of current practices. Then proceed with caution and avoid a costly dive into contract reclassifications before final decisions. Fleet managers should monitor district courts and stay in touch with counsel about updates in californias enforcement posture.

Scope and Terms of the TRO: Exemptions, Duration, and Limitations

Recommendation: Narrow the exemption to trucking work clearly qualifying under AB5’s carveout and require documentation proving independent contractor status and fmcsa safety compliance, so operators and contractors can keep full work in california free from misclassification; this approach would be deserved by drivers and employees.

Exemption scope: Where a carrier operates under a written contract with shippers and brokers, the exemption would apply to driving, loading, and related tasks that fit an independent-contractor model. The court would assess whether terms reflect the kind of control and profitability structure that defines true independence. Assemblywoman Gonzalez argued for a model exemption in the assembly, and the agreed approach would focus on the case test, limiting relief to work performed under contract rather than all fleet functions.

Duration: The TRO is set for a specific, limited period–typically around fourteen days–with a potential extension if the record shows ongoing need and safeguards public safety. Protests from unions and industry groups could influence the length and conditions of any renewal; then the court would rule on whether to extend or narrow the relief.

Limitations: The exemption covers only activities that meet strict criteria and excludes employees who do not meet the independent-contractor standard. It does not shield dispatch, maintenance, or administrative work, nor non-transport tasks, and it requires continued compliance with fmcsa rules. The order would specify the exact duties allowed and would require ongoing reporting; this is not a blanket free pass to bypass california labor laws or any agency standards, could be reconsidered if the model proves inadequate.

Take steps now: conduct a thorough contract review to confirm alignment with an agreed, testable independence model; document control over work methods, schedules, and equipment; maintain a clear agent relationship with drivers who could be classified as contractors under the case test; gather evidence of safety compliance and insurance, then prepare a short briefing for the assembly to explain how the exemption would work for operators and contractors alike, including a plan for nationwide considerations in nations where policies diverge. If the order remains in place, this proactive approach, not a dive into ambiguity, helps ensure the kind of protection deserved by workers while reducing litigation risk for california entities.

Contractor vs. Employee: Payroll, Benefits, and Compliance Implications

Based on control and economic realities, classify workers as employees where the rule requires close supervision; otherwise use clearly drafted contractor agreements approved by counsel to minimize misclassification risk and protect revenue.

Where states vary in tests for independence, implement a consistent framework based on documented requirements. The questions you ask to determine status should be agreed with HR and legal, and the framework should be transparent to truckers and providers alike. A misclassification aimed against Dynamex standards can trigger audits, penalties, and back taxes, so start with a preliminary assessment and document findings thoroughly. This approach helps companies stay compliant as orders extend and as January budgeting cycles approach.

Payroll and benefits hinge on classification. If treated as employees, you withhold income tax, Social Security, and Medicare, pay unemployment taxes, and must offer benefits such as health coverage, retirement plans, and paid time off. For contractors, you issue Form 1099-NEC, avoid withholding, and rely on agreements that detail scope, deliverables, and payment terms. A faaaa level of diligence matters to prove the relationship is not a disguised employment arrangement, especially when economic dependence grows or when tools and expenses are provided by the company. Aviation and trucking contexts often mix models where control matters, so track who bears risk and who controls schedules–these details influence final classifications and how feel about the arrangement.

Agreed policies also cover eligibility, reimbursement, and leave. If a worker becomes entitled to benefits due to hours worked or revenue thresholds, clarify the trigger points in the contract so providers know when to convert statuses. The rule here is simple: when control, integration, and economic dependence point to employment, adjust payroll and eligibility accordingly; when they point to independent work, keep documentation up to date and align with applicable requirements.

Compliance and governance require ongoing documentation. Keep a living classification plan, maintain job descriptions, and log supervision, equipment use, and decision rights. Prepare for preliminary reviews by regulators; respond promptly to inquiries; and update the plan as orders extend or as final decisions emerge. The ongoing process should be in writing, with evidence tucked into files for each worker, including aviation, trucking, and other transport providers where misclassification risk remains material. Questions about status should be answered with data, not assumptions, and the business should act on leading indicators, not rumors. Regulators told us to keep documentation current; going forward, use a transparent process to support every classification decision.

Practical Steps for Carriers: Revising Contracts, Classifications, and Driver Communication

Contract Revisions and Classifications

This approach extends your contracts with shippers and brokers to explicitly include the exemption for California AB5-related work and to cover drayage operations. Then insert a clause that triggers automatic scope updates if the exemption changes, with a defined lead time for amendments. If any state ruled differently, adjust the clause to reflect local requirements.

Run an internal audit to reclassify drivers where current status may misclassify workers as independent contractors. Build a plan with your attorneys to document criteria, duties, control, and compensation, and align payroll codes and benefits with eldt standards to reduce misclassification risk. The president should sign off on the policy changes, and owners and managers must approve signoffs and set a timetable for changes in west coast operations.

Prepare a Q&A for management and drivers that clarifies classification outcomes, impact on revenue sharing, and the relationship with drayage requirements. This approach keeps the process aligned across states. Gather information from states where exemptions apply and from states where issues remain, so you can answer questions quickly and consistently.

Driver Communication and Information Sharing

Establish a single contact channel for drivers: a dedicated contact email, a phone line, and a simple online form. Publish information sheets with exemption details, who to contact (attorneys and company representatives), and the process to raise questions. On tuesday, hold a short briefing with owners and truckers to explain changes, capture questions, and update the FAQ accordingly. If drivers still have questions, redirect them to the contact channel for rapid responses. Going forward, maintain a central repository with versioned updates and contact information for eldt compliance and misclassification issues.

Next Steps and Key Resources: Dive Brief, Dive Insight, and Recommended Reading

Review California AB5 status and map a compliance plan with your employers group today, using the latest resources to guide actions for 2025 and beyond. Start by identifying whether your operation relies on workers in drayage, trucking, or aviation sectors, and align with the California legislation shaping those roles.

1. The Brief
   • Calibrate expectations for exemptions sought by carriers and employers; the Brief notes how courts weigh worker-based classifications in sectors such as trucking, drayage, and aviation.
   • Assess the impact on operations across industries; the data show that some employers will adjust staffing models in response to changes in the law over the next years.
   • Use the findings to scrub internal classifications and prepare a plan that respects workers while maintaining business continuity.
2. The Insight
   • Engage lawmakers and community groups in practical policy discussions; assemblywoman Gonzalez and assemblywoman Rangel are cited in proposals that shape carrier and worker outcomes.
   • Coordinate with aviation, trucking, and other carriers to gather data on how exemptions affect scheduling, pay, and staffing reliability.
   • Define concrete steps to continue compliance work, including worker-based assessments, contract reviews, and documentation templates, and share results with the broader supply chain.
3. Recommended Reading
   • California AB5: A Practical Overview – clarifies exemptions and enforcement patterns for employers and courts.
   • Drayage and trucking in California – regulatory context and enforcement trends across port corridors and middle-mile operations.
   • State policy briefs from industry associations on aviation and freight logistics – focusing on how the legal framework shapes operations.
   • Proposals backed by assemblywoman Gonzalez and assemblywoman Rangel – summaries and potential impact on workers and industries.
   • Internal tracker: use the code faaaa in communications to tag and monitor AB5-related actions across teams.

Tighten timelines by assigning owners for each action item, set quarterly check-ins with updates to courts and operators, and share analysis with their networks to ensure alignment across california-based industries and employers.