No. 18-469

MacMillan-Piper, Inc. v. Washington State Employment Security Department

Lower Court: Washington
Docketed: 2018-10-12
Status: Denied
Type: Paid
Response Waived
Tags: carrier-classification carrier-control faaaa federal-aviation-act federal-aviation-administration-authorization-act- federal-lease-contract-provisions federal-preemption independent-contractor independent-contractors preemption state-law trucking-industry unemployment-compensation unemployment-compensation-taxes
Key Terms:
AdministrativeLaw Arbitration SocialSecurity DueProcess Securities
Latest Conference: 2018-11-30
Question Presented (from Petition)

1. The Federal Aviation Administration Authorization
Act, 49 U.S.C. § 14501(c)(1), ("FA") broadly preempts
any state action that relates even indirectly to a carrier's
prices, routes, or services. Washington State's statute
defining independent contractors for unemployment
compensation taxes, Wash. Rev. Code § 50.04.140, makes
it impossible for such federally-authorized independent
contractors in the trucking industry (owner/operators)
to ever be anything but trucking carriers' employees.
Such a reclassification eliminates an established business
model in that industry. Is such a reclassification scheme
preempted by the FA, given its direct and indirect
effects on prices, routes, and services of trucking carriers?

2. 49 C.F.R. § 376.12 regulates the relationship
between trucking carriers and owner/operators,
specifically providing in C.F.R. § 376.12(c)(4) that
compliance with the federal requirement of exclusive
carrier possession, control, and use of owner/operator
equipment during the duration of the parties' equipment
lease may not affect whether an owner/operator is an
employee or independent contractor under state law.
Are courts barred from considering federally-mandated
lease contract provisions in determining carrier control
over an owner/operator for purposes of unemployment
compensation taxation?

Question Presented (AI Summary)

Whether Washington's statute defining independent contractors for unemployment compensation taxes preempts the Federal Aviation Administration Authorization Act's broad preemption of state action relating to carrier prices, routes, or services

Docket Entries

2018-12-03
Petition DENIED.
2018-11-07
DISTRIBUTED for Conference of 11/30/2018.
2018-11-01
Waiver of right of respondent State of Washington Employment Security Department to respond filed.
2018-10-10
Petition for a writ of certiorari filed. (Response due November 13, 2018)

Attorneys

MacMillan-Piper, Inc.
Philip Albert TalmadgeTalmadge/Fitzpatrick/Tribe, Petitioner
State of Washington Employment Security Department
Jay Douglas Geck — Respondent