California Supreme Court Orders Trial to Determine if O-O’s were Misclassified as Independent Contractors

Drayage carrier Pac Anchor utilized truck lease-purchase business model

In another major set-back for California based motor carriers, the California Supreme Court issued a decision on July 28, 2014 affirming California’s Business and Professional Code § 17200 (“unfair competition law” or “UCL”) is not preempted by federal law. This decision is closely tied to the recent Ninth Circuit decision finding no federal preemption exists concerning motor carriers being required to follow California’s (paid) meal and rest break requirements for their employee truck drivers. Read more