On January 29, 2019, the Third Circuit Court of Appeals
concluded that the Federal Aviation Administration Authorization
Act of 1994 (FAAAA) does not preempt New Jersey's ABC test for
determining whether a worker is an independent contractor or
employee. The case is Bedoya v. American Eagle Express Inc.
Background
Congress enacted the FAAAA in 1994 to preempt state trucking
regulations that had become burdens on interstate commerce and free
trade, and to avoid a "patchwork" of state laws, rules,
and regulations that increased costs and caused significant
inefficiencies for interstate motor carriers. To promote this goal,
the FAAAA included an express preemption provision, providing that
states cannot enact or enforce laws or regulations "related to
a price, route, or service of any motor carrier . . . with respect
to the transportation of property."
