CSX Transportation, Inc. v. Healey

861 F.3d 276, 2017 WL 2703431
CourtCourt of Appeals for the First Circuit
DecidedJune 23, 2017
Docket16-2171P
StatusPublished
Cited by9 cases

This text of 861 F.3d 276 (CSX Transportation, Inc. v. Healey) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSX Transportation, Inc. v. Healey, 861 F.3d 276, 2017 WL 2703431 (1st Cir. 2017).

Opinion

KAYATTA, Circuit Judge.

In 2014, Massachusetts voters enacted by plebiscite the Massachusetts Earned Sick Time Law (“MESTL”). 2014 Mass. Legis. Serv. ch. 505 (West). The law requires most employers with eleven or more employees to provide “[ejarned paid sick time” for a variety of reasons, including absence from work due to illness. Mass. Gen. Laws ch. 149, § 148C(a)-(e). The question posed by these appeals is whether application of the MESTL to interstate rail carriers that employ workers in Massachusetts is preempted by the Railroad Unemployment Insurance Act (“RUIA”), 45 U.S.C. §§ 351-369. That federal law requires interstate rail carriers to bear the cost of an insurance program for employees who miss work on account of sickness and are not otherwise compensated during their absence. See id. § 352(a)(1)(B). The RUIA states that its provision for the payment of sickness benefits is “exclusive,” and that no person employed by an interstate rail carrier “shall have or assert any right ... to sickness benefits under a sickness law of any State.” Id. § 363(b).

For the following reasons, we agree with the district court that the RUIA certainly *278 preempts some parts of the ME STL as applied to employees of interstate rail carriers. We nevertheless remand for further consideration of whether other parts of the Massachusetts law that are not within the preemptive reach of the RUIA, and are not otherwise preempted by another federal law, might still be applied to interstate rail carriers.

I.

A.

As originally enacted in 1938, the RUIA mandated that interstate rail carriers fund an insurance system that provides partial wage replacement, known as “unemployment benefits,” to covered employees who are not working but who are able and available to work. See Act of June 25, 1988, ch. 680, §§ l(k), 2(a), 52 Stat. 1094, 1096 (codified as amended at 45 U.S.C. §§ 351(k)(l), 352(a)(1)(A)). In 1946, Congress added to the RUIA a mandate that interstate rail carriers also fund “sickness benefits” to provide a minimum level of wage replacement for employees unable to work due to sickness. See Act of July 31, 1946, ch. 709, §§ 301-07, 60 Stat. 722, 735-37 (codified at 45 U.S.C. §§ 351(h)-®, (k)(2), ffi, 352(a), (c), (f)).

Adding sickness benefits to the statute required Congress to address a series of questions. Who was covered? Which conditions qualified as a sickness? When did the employee become eligible for sickness benefits? What was the amount and duration of the benefits? How and to what extent must the employer fund the benefits? The text of the RUIA answers each of these questions. As generally applicable to most employees, it requires the payment of “sickness benefits” for “each day of sickness after the 4th consecutive day of sickness in a period of continuing sickness.” 1 45 U.S.C. § 352(a)(1)(B)®. A “day of sickness” means “a calendar day on which because of any physical, mental, psychological, or nervous injury, illness, sickness, or disease [the employee] is not able to work.” Id. § 351(k)(2). It also encompasses, “with respect to a female employee, a calendar day on which, because of pregnancy, miscarriage, or the birth of a child, (i) she is unable to work or (ii) working would be injurious to her health.” Id. The only added criteria defining “day of sickness” are that a “day of sickness” does not include: (1) a day on which “remuneration is payable or accrues to [the employee],” or (2) a day of. unpaid absence not documented in accordance “with such regulations as the [Railroad Retirement] Board may prescribe.” Id. In other words, the employee gets no wage replacement if the employee is collecting payment for services anyhow, or if the employee does not document the claim for sickness benefits in accordance with regulations established by the Board that administers these benefits.

These decisions by Congress established only the minimum level of benefits that must be paid. Employers remained free to provide benefits to sick workers sooner, to continue benefits longer, or to pay benefits at higher rates. The employees, in turn, remained free to bargain for better benefits.

B.

Having mandated a nationwide, minimum level of sickness benefits for this quintdssentially interstate business, Congress also exercised its power under the Supremacy Clause to preempt certain *279 state laws. The text of the preemption provision states as follows:

By enactment of this chapter the Congress makes exclusive provision for the payment of unemployment benefit's for unemployment occurring after June 30, 1939 and for the payment of sickness benefits for sickness periods after June 30, 1947, based upon employment (as defined in this chapter). No employee shall have or assert any right to unemployment benefits under an unemployment compensation law of any State with respect to unemployment occurring after June 30, 1939, or to sickness benefits under a sickness law of any State with respect to sickness periods occurring after June 30, 1947, based upon employment (as defined in this chapter). The Congress finds and declares that by virtue of the enactment of this chapter, the application of State unemployment compensation laws after June 30, 1939, or of State sickness laws after June 30, 1947, to such employment, except pursuant to section 362(g) of this title, would constitute an undue burden upon, and an undue interference with the effective regulation of, interstate commerce.

Id. § 363(b).

The parties agree that the foregoing language, as applied today to interstate rail carriers, plainly' preempts any mandate to provide “sickness benefits under a sickness law of any State ... based upon employment.” Id. Their disagreement centers on whether the employee benefits mandated by the MESTL qualify as such. Before the MESTL took effect, several interstate rail carriers sought assurance from the Massachusetts Attorney General that the law would not apply to their railroad employees working in Massachusetts. The Attorney General “declined to offer any assurances” about the relationship between the state and federal laws.

Facing “á substantial threat of imminent prosecution,” the carriers filed the present action against the Attorney General seeking a declaratory judgment that the MESTL is preempted by the RUIA as well as by the Railway Labor Act (“RLA”), 45 U.S.C. §§ 151-165, and the Employee Retirement Income ' Security Act (“ERISA”), 29 U.S.C. §§ 1001-1461. The district court permitted several unions representing Massachusetts railroad workers to intervene as defendants. It also accepted a “statement of interest” filed by the United States in support of the defendants.

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Bluebook (online)
861 F.3d 276, 2017 WL 2703431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csx-transportation-inc-v-healey-ca1-2017.