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

In People ex rel. Harris v. Pac Anchor Transportation, Inc. (2014) 59 Cal.4th 772, the California Supreme Court found no federal preemption when, after a trucking company classified its drivers as independent contractors rather than employees, the state sued the trucking company for violating state unfair competition law and state labor and insurance laws. (Id. at p. 775.) The court held that the state laws apply to all industries and therefore any effect on the trucking company's "price, route, or service" is too remote. (Id. at p. 785.) Further, the court rejected the trucking company's argument that complying with state law would drive up their cost of business and thus force it to raise prices and affect services, because again any such effect is too remote. (Id. at pp. 785-786.) Finally, the court noted that Congress did not intend for trucking companies to evade state labor and wage standards when it enacted the FADA. (59 Cal.4th at pp. 786-787.)