People v. Pac Anchor Transp., Inc., 2014 WL 3702674 (Cal. S. Ct. 2014)

The People on behalf of the State of California filed this unfair competition law (“UCL”) action against Pac Anchor Transportation, Inc., for misclassifying drivers as independent contractors and for other alleged violations of California labor and unemployment insurance laws.  In response, Pac Anchor filed a motion for judgment on the pleadings on the ground that the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) preempted the People’s claims.  The California Supreme Court held that the FAAAA does not preempt the UCL action, noting that the “People’s sole premise for invoking the UCL is to ensure that employers properly classify their employees or independent contractors in order to conform to state law.”  See also Dilts v. Penske Logistics, LLC, 2014 WL 3291749 (9th Cir. 2014) (claims by drivers suing for violations of California meal and rest break laws were not preempted by the FAAAA because the state laws at issue are not related to “prices, routes, or services”).