Federal Aviation Administration Authorization Act of 1994

The Act bars states from enforcing laws related to a price, route or service of any motor carrier, broker or freight forwarder transporting property, with exceptions for state safety authority with respect to motor vehicles, size and weight limits, insurance requirements and household goods. Preemption took effect January 1, 1995. In Montgomery v. Caribe Transport II, decided May 14, 2026, the Supreme Court unanimously held that state negligent selection claims against freight brokers fall within the safety exception and are not preempted.

FAAAA preemption decides which state laws can reach trucking and freight brokerage, and the 2026 Supreme Court ruling raised broker exposure. 3PLs that broker loads can now face state negligence suits when a carrier they selected causes a crash, so carrier vetting procedures matter more. For example, a 3PL that tenders a load to a carrier with a conditional safety rating and poor inspection history may be sued by an injured motorist, and preemption is no longer a reliable early defense. The statute was also central to litigation over California AB5 and owner-operators.

• Freight BrokerMatches your load with a trucking company
• Third-Party Logistics3PLAn outside warehouse that ships your orders

• California AB52019, effective 2020 · California ABC test for independent contractor status
• Motor Carrier Act of 19801980 · Deregulated US trucking rates and market entry
• Trucking Industry Regulatory Reform Act of 19941994 · Ended tariff filing for most negotiated truck rates

1. 49 U.S.C. 14501, Federal authority over intrastate transportation, Cornell LII law.cornell.edu
2. Supreme Court narrows FAAAA preemption for transportation brokers, JD Supra jdsupra.com