Lupian v. Joseph Cory Holdings LLC, No. 17-2346 (3d Cir. 2018)Annotate this Case
The contracts between the Drivers and Joseph Cory, a motor carrier business, purported to establish that the Drivers would work as independent contractors. The Drivers claim the realities of the relationship made them employees under the Illinois Wage Payment and Collection Act (IWPCA), 820 ILCS 115/1–115/15. The contracts expressly permitted Joseph Cory to take “chargebacks” for any expense or liability that the Drivers had agreed to bear, including costs for “insurance, any related insurance claims, truck rentals, . . . uniforms,” and “damaged goods,” from the Drivers’ paychecks without obtaining contemporaneous consent. The Third Circuit affirmed the denial of Joseph Cory’s motion to dismiss the Drivers’ suit. The Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. 14501–06, does not preempt the IWPCA. Wage laws like the IWPCA are traditional state regulations and part of the backdrop that all business owners must face. IWPCA does not single out trucking firms and its impact is too tenuous, remote, and peripheral to fall within the scope of the FAAAA preemption clause. IWPCA’s limited regulation of ministerial aspects of the manner in which employees are paid does not have a significant impact on carrier rates, routes, or services of a motor carrier and does not frustrate the FAAAA’s deregulatory objectives.