Nat'l R.R. Passenger Corp. v. Su

289 F. Supp. 3d 1130
CourtDistrict Court, E.D. California
DecidedOctober 10, 2017
DocketNo. 2:15–cv–0924–KJM–EFB
StatusPublished
Cited by4 cases

This text of 289 F. Supp. 3d 1130 (Nat'l R.R. Passenger Corp. v. Su) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nat'l R.R. Passenger Corp. v. Su, 289 F. Supp. 3d 1130 (E.D. Cal. 2017).

Opinion

Kimberly Mueller, UNITED STATES DISTRICT JUDGE

Several California railroad employers sue the California Labor Commissioner, seeking a declaration that federal law preempts provisions of a local paid sick leave law. Before the court are three cross-motions for partial summary judgment raising the question whether the *1133Railroad Unemployment Insurance Act, 45 U.S.C. § 351 et seq. ("RUIA"), preempts California's Healthy Workplaces, Healthy Families Act of 2014 ("California Act"). See ECF Nos. 49, 51, 53. The court heard all three motions on January 19, 2017. Hr'g Mins., ECF No. 67. As discussed below, the court finds RUIA preempts a portion of the California Act and therefore GRANTS and DENIES portions of each motion.

I. BACKGROUND

A. The Parties

Plaintiffs are several railroad companies: The National Railroad Passenger Corporation, BNSF Railway Company, Union Pacific Railroad Company, Los Angeles Junction Railway, TTX Company and Central California Traction Company. The following interested unions have intervened: The Transportation Division of The International Association of Sheet Metal, Air, Rail and Transportation Workers; Mechanical Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers; Brotherhood of Locomotive Engineers and Trainmen; International Brotherhood of Electrical Workers; National Conference of Firemen & Oilers District of Local 32BJ, Service Employees International Union (SEIU); Brotherhood of Railroad Signalmen and Brotherhood of Maintenance of Way Employees Division/International Brotherhood of Teamsters. Order May 17, 2016, ECF No. 37 (granting unopposed intervention).

B. Overview of RUIA and the California Act

A basic understanding of the RUIA and the California Act is necessary to understand the preemption analysis called for by the instant motions. Under the California Act, employees that meet certain criteria accrue paid sick days that they can use for sickness-related work absences. Cal. Lab. Code §§ 245.5(b), 246(a). Specifically, eligible employees are those who, on or after July 1, 2015, have worked in California for the same employer for thirty or more days within a year from their start date. Id. Although the California Act refers to the leave as a "paid sick day," employees may also use the leave for other reasons, such as preventive treatment, caring for a family member, or taking protective measures against domestic violence, sexual assault or stalking. Id. § 246.5(a)(2).

RUIA, although primarily a railroad unemployment law, also contains a sickness benefits provision. Congress enacted RUIA in 1938 to create a national system of unemployment insurance for railroad employees. See 45 U.S.C. § 351, et seq. ; H.R. Rep. No. 75-2668 at 1 (1938) ("Congress has long recognized that a number of problems peculiar to the railroad industry necessitate separate treatment of that industry in various aspects, rather than ... leaving it subject to varied State laws, and to meet that necessity has enacted such legislation as [the RUIA]."). The borderless nature of railroad employees' work made it challenging to define their rights under various state unemployment insurance plans, H.R. Rep. No. 75-2668, at 2, so RUIA removed these workers from state coverage and created a national unemployment insurance system tailored to the "peculiar needs of the industry." Id. Congress later amended RUIA to give unemployment benefits to railroad employees who could not work because of sickness, injury or pregnancy. 45 U.S.C. § 351(k)(2) ; see also S. Rep. No. 79-1710, at 5 (1946). Under this "sickness provision," the federal Railroad Retirement Board ("RRB"), which administers retirement, survivor, unemployment and sickness benefits to railroad workers and their families, pays employees that miss work for a qualifying *1134sickness that debilitates them for more than four days. See 45 U.S.C. § 351. Congress also added a "preemption provision" that expressly provides "[n]o employee shall have or assert any right to unemployment benefits under an unemployment compensation law of any State with respect to unemployment ... 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)." 45 U.S.C. § 363(b).

C. Complaint and Motions for Partial Summary Judgment

Plaintiff railroad employers have not implemented or complied with the California Act because they contend RUIA preempts the paid sick leave provisions. Compl., ECF No. 1. Plaintiffs seek a declaration that RUIA and two other federal statutes, the Railway Labor Act ("RLA"), 45 U.S.C. § 151 et seq. , and the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. § 1140 et seq. , preempt the California Act as applied to railroad employees. Third Amended Complaint ("TAC") ¶¶ 1, 35-36, 41-42, 47, ECF No. 41. Plaintiffs also seek to enjoin the California Act's enforcement. Id. ¶ 1.

Plaintiffs, defendant and intervenors all move for summary judgment as to RUIA preemption.

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289 F. Supp. 3d 1130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natl-rr-passenger-corp-v-su-caed-2017.