Bankr. L. Rep. P 76,065 in Re Baker & Drake, Inc., Dba "Yellow Cab", Debtor. Baker & Drake, Inc. v. Public Service Commission of Nevada
Opinion
Opinion
Fletcher, J.
Baker & Drake, Inc. (“Baker”) appeals the district court’s decision that the Bankruptcy Code, 11 U.S.C. § 1 ei seq., does not preempt Nevada Administrative Code, eh. 706, § 706.-371 (1992) [hereinafter “NAC 706.371”], a state regulation which requires that the drivers for taxicab companies be employees of the companies rather than independent contractors. We have jurisdiction pursuant to 28 U.S.C. § 158 (d), and we affirm.
FACTS
Baker operates a taxicab company in Nevada. Until its reorganization under Chapter 11 of the Bankruptcy Code, Baker’s approximately 200 drivers were employees driving cabs owned by Baker.
Claiming, among other things, to be burdened with numerous personal injury lawsuits, Baker filed for Chapter 11 reorganization on April 10, 1991. Part of Baker’s proposed reorganization involved its employee-drivers becoming independent contractors who would lease their cabs from Baker. To be treated as independent contractors under agency and tort law, the drivers had to have considerable freedom in the performance of their jobs. This arrangement would shift the ultimate control over taxi services from Baker to the drivers themselves. Apart from the effect it had on…