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 (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

Question Presented (from Petition)

QUESTIONS PRESENTED 1. The Federal Aviation Administration Authorization Act, 49 U.S.C. § 14501@(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 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?

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
Philip Albert TalmadgeTalmadge/Fitzpatrick/Tribe, Petitioner
State of Washington Employment Security Department
Jay Douglas Geck — Respondent
Jay Douglas Geck — Respondent