A federal appeals panel has delivered a win to California workers, reversing a lower court ruling that federal transportation laws pre-empted state rules governing rest and meal breaks for Penske Logistics LLC truck drivers.

In the class-action Dilts v. Penske Logistics, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit found on July 9 that California labor laws requiring paid meal and rest time do not have a significant effect on the transportation and logistics company’s rates, routes and services.

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