People ex rel. Harris v. Pac Anchor Transp., Inc.

The People filed a complaint against Defendants, Pac Anchor Transportation, Inc. (Pac Anchor) and Alfredo Barajas, for violating the unfair competition law (UCL), alleging that Defendants misclassified drivers as independent contractors and committed other violations of California’s labor and unemployment insurance laws. The trial court granted judgment on the pleadings in Defendants’ favor, determining that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) preempted the People’s action. The court of appeals reversed, concluding that because the People’s UCL action was not related to Pac Anchor’s price, route, or service as a motor carrier, the FAAAA did not preempt this action against Defendants. After noting that the FAAAA does not preempt generally applicable employment laws that affect prices, routes, and services, the Supreme Court affirmed, holding that the FAAAA did not preempt the People’s UCL action against Defendants in this case, as the UCL action was independent of Defendants’ price, routes, or services with respect to the transportation of property. View "People ex rel. Harris v. Pac Anchor Transp., Inc." on Justia Law