NEWS & REPORTS

Western States Trucking Association’s FAAAA Preemption Argument Dismissed by California District Court

Apr 2, 2019 | Industry News

On March 29, the United States District Court for the Eastern District of California held that the Federal Aviation Administration Authorization Act (“FAAAA”) does not preempt the application of the Dynamex ABC Test to a motor carrier for purposes of determining whether owner-operators are considered employees under California’s Wage Orders. Western States Trucking Ass’n v. Schoorl, 2019 WL 1426304, *10 (E.D. Cal. Mar. 29, 2019).

In its ruling, the court reasoned that, although the decision in Dynamex applied the ABC Test to interpret the meaning of “engage, suffer, or permit to work” for purposes of California Wage Order No. 9, the definition was equally applicable “across the board to all wage orders” and that recent Ninth Circuit decisions applied, resulting in a decision that Dynamex is not preempted by the FAAAA. See Californians for a Safe and Competitive Dump Truck Transp. v. Mendonca and Dilts v. Penske Logistics, LLC. In so doing, the court specifically disagreed with the Central District of California’s decision in Alvarez v. XPO Logistics Cartage, LLC.

In its discussion, the court found that the rationale of Mendonca and Dilts applied, and that the generally applicable interpretation of the term “employ” as used in Dynamex “does not run afoul of the FAAAA simply because that interpretation may have some effect on transportation services.” The court then specifically held that the impact of Dynamex on prices, routes, and services of a motor carrier was indirect and insufficient to warrant preemption.

Without further guidance from an appellate court, it is difficult to predict where future courts will land regarding this developing split of authority addressing preemption. In the interim, any motor carrier utilizing owner-operators in California should consider taking steps to avoid becoming a misclassification litigation target and potentially reduce liability exposure in the event of a misclassification determination. For questions about the Dynamex, Western States, or Alvarez decisions, please contact Jim Hanson or Greg Feary.

For a more complete discussion of the Dynamex decision, please see our May 2, 2018 Transportation Law Alert and June 21, 2018 Transportation Law Alert, For a more complete discussion of the Alvarez decision please see our December 5, 2018 Law Alert.

About the Author

NEWS & REPORTS

How to Get More Out of Commercial Driver Vehicle Inspections

Deborah Lockridge   When Tom Bray was in charge of safety at a motor carrier, a frustration was seeing drivers leave the yard with an easily correctable problem that could result in a violation or worse — but should have been found in a driver vehicle inspection...

When Must Truckers Complete a Driver Vehicle Inspection Report?

Deborah Lockridge A common misconception about driver vehicle inspection reports for truckers and other commercial drivers is that one is required at every pre-trip inspection. How often must a walk-around pre-trip inspection be conducted? Before every trip. How often...

Update on Relevant U.S. Regulations

PHMSA Announces Future Office of Hazardous Materials Safety Meetings On April 24, the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Office of Hazardous Materials Safety announced it will host three public meetings throughout the remainder of 2024 in...

5 Fleet Dash Cam Myths

Mark Schedler Dash cam use among commercial and business fleets is exploding, and those who haven't yet invested in this cab technology are missing out on significant risk reduction and operational benefits. If you're one of the fleets still on the dash cam sidelines,...

Research exposes alarming cybersecurity vulnerabilities of ELDs

Tyson Fisher New academic research reveals how vulnerable ELDs are to cyberattacks made by hacking into a truck’s system in seconds while driving alongside it. Jeremy Daily, associate professor of systems engineering at Colorado State University, is no stranger to...

CATEGORIES