OOIDA Takes the Fight to California: Will AB 5 Crush the Owner-Operator Dream?

by TRUCKERS VA
(UNITED STATES)

Introduction: Courtroom Clash with the Future of Independent Trucking on the Line

Today, the Owner-Operator Independent Drivers Association (OOIDA) stepped into the legal ring against the state of California — and the gloves are off.

They’re facing off in the U.S. Court of Appeals for the Ninth Circuit, arguing that California’s infamous AB 5 law is more than just a regulatory headache — it’s an existential threat to independent truckers everywhere.

At the heart of the fight is a single question:

Can you still be your own boss in the state of California?

AB 5: The Law That Changed Everything

For folks who don’t speak legalese on the daily, here’s the plain-English breakdown:

AB 5, passed in California in 2019, is a labor law aimed at cracking down on misclassified workers — mostly in gig economy jobs like rideshare and delivery.

But it didn’t stop there.

It uses what’s called the ABC Test to determine whether a worker is truly an “independent contractor” or must legally be classified as an employee.

For most trucking owner-operators — especially those leased to larger carriers — the ABC test is a death sentence for independence.

Why OOIDA Is Suing

OOIDA’s case is simple but strong:

AB 5 violates the Commerce Clause of the U.S. Constitution by interfering with interstate commerce — something only the feds are supposed to touch.

The law’s broad application to truckers overreaches and threatens to destroy an entire segment of the industry.

Owner-operators who live outside California but haul loads into the state are unfairly restricted.

As they present oral arguments before the Ninth Circuit, OOIDA is making it crystal clear:

This isn’t just about California. It’s about whether trucking can still offer freedom.

What the ABC Test Says (And Why Truckers Hate It)

Here’s how California’s ABC test works. To be classified as an independent contractor, a worker must:

A. Be free from the control and direction of the hiring entity
B. Perform work that is outside the usual course of the hiring entity’s business
C. Be customarily engaged in an independently established trade or business

🚨 Red flag alert: B is the killer.

If you’re hauling freight for a carrier — and freight hauling is their business — then you fail the test. Period.

So, even if you own your truck, pay your own taxes, carry your own insurance, and pick your own routes — AB 5 says you’re not independent. That’s why OOIDA is furious.

What This Means for Drivers

Let’s be blunt: If OOIDA loses this case, a lot of drivers could be out of luck.

🚫 No more lease-ops in California – Big carriers might stop working with leased owner-operators in the state.

🛑 Interstate chaos – If you cross into California, you might fall under AB 5 even if you’re from out of state.

👎 Less flexibility, more control – Many drivers who became owner-ops for freedom could be forced to become W-2 employees.

🧾 Higher costs – Carriers will need to change contracts, increase payroll taxes, and possibly restructure fleets.

And let’s not forget: If California wins, other states may follow.

Industry Reactions

💬 OOIDA: “Truckers have a right to operate freely and independently. AB 5 threatens livelihoods and oversteps state authority.”

⚖️ California regulators: “This law protects workers from being exploited and ensures proper employee classification.”

🚛 Owner-ops: “We’re not Uber drivers. We’re small business owners. AB 5 treats us like we don’t know how to run our own show.”

📦 Carriers: Quietly nervous. Many are waiting to see how the ruling shakes out before making big changes.

Bottom Line

This isn’t just another courtroom drama — it’s a turning point for the entire trucking industry.

If AB 5 stands, the independent contractor model could be gutted in California, with ripple effects across the country.

OOIDA is doing what a lot of drivers can’t — standing up in court and saying “not on our watch.”

Whether you’re a company driver, a lease-op, or a full-blown owner-operator, this fight affects your future — and your freedom.

🚨

Call to Action

🛑 Don’t wait for the courts to decide your fate.
💡 Start learning income skills and building flexibility outside the cab.

👉 Visit RetireFromTrucking.com to learn how drivers are building online income, planning smart exits, and gaining real control over their future.

Because no matter how this court case ends — the smartest truckers are making moves now.