Labor & Employment Law Update

In a unanimous decision issued May 14, 2026, the Supreme Court of the United States held that negligent hiring/selection claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act (FAAAA).

In Montgomery v. Caribe Transport II, LLC, the Court ruled that state law negligent hiring/selection claims fall within the FAAAA’s “safety exception,” which preserves state authority over safety matters “with respect to motor vehicles.” The Court concluded that a broker’s carrier selection decisions “concern” motor vehicles because they directly determine which trucks and drivers will be on the road. As a result, the plaintiff’s negligent hiring/selection claims against freight brokers, like C.H. Robinson, may proceed.

This ruling significantly increases litigation exposure for brokers, particularly in jurisdictions that had previously found such claims preempted. While the Court emphasized that the FAAAA still bars many state regulations affecting prices, routes, and services, it made clear that safety related tort claims—when tied to motor vehicle risks—remain viable. Brokers should expect plaintiffs to test the boundaries of this decision and should anticipate heightened scrutiny of carrier‑vetting practices, safety‑rating review processes, and documentation protocols.

We will continue monitoring how lower courts apply this ruling and what it means for broker liability nationwide. If you would like a deeper breakdown of the decision, its practical implications, or recommended risk‑mitigation steps, please reach out and let us know.

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