3rd Circ. NJ Classification Ruling Curbs Scope Of Preemption

By Linda Chiem (January 30, 2019, 9:09 PM EST) -- The Third Circuit's recent finding that federal law does not preempt New Jersey's standard for distinguishing between employees and independent contractors further hamstrings the trucking industry's fight against state workplace regulations that it claims interfere with interstate transport and drive up labor costs, experts say.

The federal circuit court on Tuesday rejected delivery and logistics company American Eagle Express Inc.'s argument that the Federal Aviation Administration Authorization Act preempted a proposed class action from delivery drivers claiming they were misclassified as independent contractors instead of employees.

The decision signals that courts are carving a brighter line limiting the scope of the...

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