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Massachusetts Delivery Association v. Coakley, No. 10-11521 (September 26, 2013)

Articles Discussing Case:

Massachusetts Independent Contractor Law Survives Trade Association’s Challenge

Ogletree Deakins • October 09, 2013
The Massachusetts Independent Contractor statute, Mass. G.L. c. 149, § 148B, establishes a rigorous three-part test for determining whether a worker performing services for an employer may be considered an independent contractor, rather than an employee. The U.S. District Court for the District of Massachusetts recently dismissed facial and as-applied challenges to the second prong of this test brought by a nonprofit trade association of delivery service providers. In Massachusetts Delivery Association v. Coakley, No. 10-11521 (September 26, 2013), the Massachusetts Delivery Association (MDA) had argued that the second prong of the test was preempted by the Federal Aviation Administration Authorization Act (FAAAA) because of its effect on labor costs and, therefore, prices. The district court held, however, that because the challenged prong of the test does not relate to the transportation of property and has only a potential effect on prices the FAAAA does not preempt it.