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January 17, 2020 | USDA Grain Transportation Report

Temporary Restraining Order on California Assembly Bill No. 5 on Truckers

State distributed 8M tons of ag products, cereal grains to other states by truck

On January 13, 2020, U.S. District Court Judge Roger T. Benitez extended a temporary restraining order, which prevents the enforcement of Assembly Bill 5 (AB-5).

AB-5 prohibits companies from using independent contractors unless their work is “outside the usual course of the hiring entity’s business.”

Trucking is an important mode in the movement of agricultural products, especially in California. According to U.S. Department of Transportation data, California truckers hauled nearly 49 million tons of agricultural products (SCTG03, which includes soybeans, fruits, vegetables, nuts, and other agricultural products) and over 4 million tons of cereal grain (SCTG02, which includes corn, wheat, and other small grains) within the State in 2018.

California also distributed almost 8 million tons of agricultural products and cereal grains to other states by truck in the same year. 

Information provided by USDA Grain Transportation Report.

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