California Supreme Court Rules Against Carrier in Misclassification Lawsuit
The California Supreme Court issued a decision this week affirming the state’s labor and unemployment compensation laws are not preempted by federal statute, specifically the Federal Aviation Administration Authorization Act of 1994.
by Staff
July 30, 2014
2 min to read
The California Supreme Court issued a decision this week affirming the state’s labor and unemployment compensation laws are not preempted by federal statute, specifically the Federal Aviation Administration Authorization Act of 1994.
This case was brought by the State of California on behalf of owner-operators who claimed they were misclassified as independent contractors and for other alleged violations of state law, according to the California Construction Trucking Association. The owner-operator truck drivers were required to enter into lease-purchase agreements for trucks with defendant motor carrier Pac Anchor Transportation as a condition of employment.
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The ruling clears the way for California Attorney General Kamala Harris to proceed with long-delayed lawsuit against Long Beach-based PAC Anchor Transportation.
The case was originally filed by the state in 2008 with a Los Angeles Court ruling in 2009 in favor of the trucking company. The case then went to an appellate court, which overturned the ruling, that was affirmed this week by the state high court, according to the Metropolitan News-Enterprise newspaper in Los Angeles.
“While both cases may be appealed to the U.S. Supreme Court, for right now they are having a chilling effect on motor carriers [in California] who have for years thought they were protected under the FAAAA,” said Joe Rajkovacz, director of governmental affairs and communications with the Western Trucking Alliance, an affiliate of CCTA.
Authorities say an Illinois trucker avoided paying tolls for two years, and now faces felony charges, possible prison time, and forfeiture of his Freightliner tractor.
Cargo theft rings plant operatives as drivers inside legitimate, fully vetted carriers, then execute coordinated thefts that look like a traditional straight theft from the outside.
ATA’s Women In Motion Council and Trucker Path highlight three truck stops that meet all seven safety-focused criteria and rank highest among female drivers.
Western Star is expanding its Star Nation Experience in 2026, adding new competitions and dealer participation to highlight operator skills and promote careers in trucking.
CarriersEdge announced the 2026 Best Fleets to Drive For overall winners, with Crawford Trucking, Fortigo Freight Services, and FTC Transportation receiving top awards.
The Department of Labor plans to expand Pell Grant eligibility to some shorter workforce training programs, a move the American Trucking Associations said will help strengthen commercial driver training schools and diesel technician training programs.
For an industry that has watched this issue go back and forth for years, the independent contractor proposal marks the latest swing in the regulatory pendulum.
