Opinion
Michaelena Fitz-Gerald and Romead Neilson appeal from a summary judgment granted in favor of SkyWest, Inc. (SkyWest), on their class action for alleged violations of California labor law regarding minimum wages, overtime, and meal/rest breaks. Appellants are suing individually and on behalf of former and current SkyWest flight attendants (FA’s) working for SkyWest in California. The trial court granted summary judgment in favor of SkyWest, ruling inter alia that the action was preempted by the Railway Labor Act (45 U.S.C. § 151 et seq.). We affirm.
SkyWest and Its Flight Attendants
SkyWest is a regional air carrier with headquarters in Utah. It operates as United Express in 91 cities and provides 1,500 daily flights to 120 cities in 32 states and Canada. SkyWest also provides air carrier services for Delta Air Lines and Continental Airlines.
SkyWest FA’s receive flight pay (also referred to as “block to block time”) from the time the aircraft blocks are removed at takeoff until the aircraft reaches its destination. In 2001, flight pay ranged from $17.50 per hour to $31.20 an hour depending on seniority and the work schedule. Top-end flight pay for FA’s is currently $37.07 an hour. FA’s also receive a per diem wage of $1.60 an hour for block time while the aircraft is readied for flight, while passengers board and disembark, and for flight standbys and stay overs. On any given workday, the ratio of block time to flight time is about two to one.
*415 The Complaint
California Industrial Welfare Commission Order No. 9-2001 (IWC Order No. 9-2001) requires that certain persons employed in the transportation industry be paid not less than the minimum wage and receive meal/rest breaks and overtime. The complaint alleges that SkyWest FA’s are not provided uninterrupted rest periods or meal breaks. Nor do FA’s receive overtime or state minimum wage for block time. The complaint seeks damages for unpaid minimum wages (first cause of action; Lab. Code, § 1194), unpaid meal and rest breaks (second cause of action), overtime (third cause of action), waiting time penalties (fourth cause of action; Lab. Code, § 203), and relief under the unfair business practices act (fifth cause of action; Bus. & Prof. Code, § 17200 et seq.).
The Summary Judgment Motion
The moving papers establish that FA compensation is based on the SkyWest Airlines Crewmember Policy Manual, which has all the attributes of a collective bargaining agreement (CBA) and was negotiated by the SkyWest In-Flight Association (SIA) and SkyWest. SIA is an employee association and the exclusive bargaining representative for SkyWest FA’s. It has 1,100 members and has negotiated compensation and workplace rules for the past 10 years. About every two years, a new SIA/SkyWest compensation agreement is negotiated, voted on by FA’s, and if approved, incorporated into the SkyWest Crewmember Policy Manual (herein referred to as CBA).
Pursuant to the CBA, FA’s bid each month for their work schedules and receive flight pay, per diem block pay, vacation and holiday pay, and compensation for flight cancellations and overnight stayovers. 1 The compensation methodology is standard in the airline industry. SkyWest FA’s are guaranteed 3.75 hours’ flight pay each workday. The CBA provides that FA’s may not eat meals during critical phases of flight and that FAA regulations prohibit FA’s from working more than 14 hours at a stretch.
As indicated, the trial court ruled that the action was preempted by the federal Railway Labor Act (RLA; 45 U.S.C. § 151 et seq.) and that application of IWC Order No. 9-2001 would violate the Airline Deregulation Act of 1978 (ADA; 49 U.S.C. § 41713(b)(1)). We review the order granting summary judgment de novo.
(Department of Industrial Relations v. Nielsen Construction Co.
(1996)
*416 IWC Order No. 9-2001 and Armenta
The California Industrial Welfare Commission “is the state agency empowered to formulate regulations (known as wage orders) governing employment in the State of California. [Citations.]”
(Tidewater Marine Western, Inc. v. Bradshaw
(1996)
The complaint alleges that block time pay ($1.60 per hour) violates California minimum wage law. SkyWest asserts that FA compensation averages $23.13 an hour (flight time plus block time, averaged over a month), a pay rate that is substantially greater than the state minimum wage.
Citing
Armenta
v.
Osmose, Inc.
(2005)
Armenta
is distinguishable on several grounds: it did not involve an interstate air carrier, it did not involve the RLA or a CBA sanctioned under the RLA, and it did not involve a state wage order that contained an RLA exemption. In
Armenta,
the employer violated its own CBA and written employment policies which required that employees be paid for time spent driving company vehicles to and from job sites.
(Armenta, supra,
*417
We concluded that the Division of Labor Standards Enforcement opinion letter did not have the force of law but the reasoning expressed in the letter was persuasive.
(Armenta, supra,
Unlike
Armenia,
here there is no evidence that SkyWest pays FA’s less than what was collectively bargained for. As discussed in
Armenia,
Labor Code “[s]ections 221, 222, and 223 articulate the principle] that all hours must be paid at the statutory or
agreed rate
. . . .”
(Armenta, supra,
The RLA provides that state law rights and obligations that do not exist independently of a collective bargaining agreement may be waived or altered by the collective bargaining agreement. (See, e.g.,
Allis-Chalmers Corp.
v.
Lueck
(1985)
Railway Labor Act
The RLA regulates labor relations between common interstate air carriers and their employees. (45 U.S.C. § 181;
DeTomaso v. Pan American World Airways, Inc.
(1987)
United Air Lines, Inc.
v.
Industrial Welfare Com.
(1963)
Overtime Wages
IWC Order No. 9-2001, subdivision 1(E) contains an RLA exemption and provides that overtime wages do not have to be paid to “employees who have entered into a collective bargaining agreement under and in accordance *419 with the [RLA], 45 U.S.C. Sections 151 et seq.” Appellants assert there is no CBA because SkyWest is a nonunion employer. The argument is without merit.
Under the RLA, airline employees have the right to organize and bargain collectively through representatives of their own choosing. (45 U.S.C. § 152.) The RLA provides that “the term ‘representative’ means any person or persons, labor union, organization, or corporation
designated either by a carrier or group of carriers or by its or their employees,
to act for it or them.” (45 U.S.C. § 151, italics added.) “There are no qualifiers attached to the [RLA’s] simple definition of ‘representative.’ The ‘representative’ of a craft of employees is, simply, a person or union [or an association] designated to act on their behalf, to accomplish what they seek to accomplish, and is not necessarily a man [or woman] for all seasons.”
(Russell v. National Mediation Bd.
(5th Cir. 1983)
California law is consistent with the RLA and provides that employees have the right to organize and collectively bargain through a representative. (See
Safeway Stores v. Retail Clerks etc. Assn.
(1953)
Here the CBA was negotiated by SIA, an employee organization recognized by SkyWest and SkyWest FA’s. For more than 10 years, SIA has negotiated wage and benefit plans that have been approved by SkyWest FA’s and made a part of the SkyWest Crewmember Policy Manual. Appellants cite no authority that the RLA exemption for overtime wages in IWC Order No. 9-2001 does not apply to CBA’s negotiated by an employee organization such as SIA.
State Minimum Wage and Meal/Rest Breaks
Although the RLA contains no specific language with respect to state minimum wage law and meals/rest breaks, our courts have interpreted the RLA to preempt state law causes of action that depend upon interpretation
*420
of a CBA.
(Hawaiian Airlines, Inc. v. Norris
(1994)
Federal courts use a similar test. In
Adames v. Executive Airlines, Inc., supra,
*421
Citing
Valles v. Ivy Hill Corp.
(9th Cir. 2005)
SkyWest FA’s collectively bargained for a compensation system that guarantees 3.75 hours’ flight pay each work shift. The CBA provides for a bundle of benefits that include flight pay, block time, overtime, flight standbys and layovers, vacation, and meal/rest breaks. Rest periods and meal breaks are referenced in the SIA/SkyWest CBA which incorporates FAA regulations that FA’s may not eat meals “during critical phases of flight.”
Assuming, arguendo, that the trial court found meal and rest break violations, it would have to determine whether the FA was receiving flight pay or block time pay when the violation occurred. IWC Order No. 9-2001, subdivisions 11(D), 12(B), states that the damages are “one (1) hour of pay at the employee’s
regular rate of compensation .
. . .”
5
(Italics added.) The trial court, however, could not determine the regular rate of compensation without interpreting the CBA. (See, e.g.,
Adames v. Executive Airlines, Inc., supra,
A similar preemption problem arose in
Burgos v. Executive Air, Inc.
(D.P.R. 1996)
Waiting Time Penalties and Unfair Business Practices
Appellants’ claims for state minimum wages (first cause of action) and meal/break time damages (second cause of action) are preempted by the RLA. With respect to overtime wages (third cause of action), IWC Order No. 9-2001 exempts SkyWest because the claim is subject to a CBA that was negotiated and approved by SkyWest FA’s. Because the first, second, and third causes of action are preempted by the RLA, the trial court properly ruled that the fourth cause of action for waiting time penalties (Lab. Code, § 203) and fifth cause of action for violation of the Unfair Business Practices Act were barred.
Interstate Commerce Clause
The trial court also correctly ruled that application of IWC Order No. 9-2001 would substantially burden interstate commerce. The purpose of the RLA is to bring about stable relations between labor and management in the national transportation industry.
(Thibodeaux v. Executive Jet Intern., Inc., supra,
*423 Airline Deregulation Act
Alternatively, the trial court ruled that the complaint was barred by the ADA. (49 U.S.C. § 41713(b)(1).) The ADA provides that a state “may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service” of an air carrier. (49 U.S.C. § 41713(b)(1); see
Vinnick v. Delta Airlines, Inc.
(2001)
Based on these federal cases, we conclude that the ADA bars the fifth cause of action for relief under the California Unfair Business Practices Act. (Bus. & Prof. Code, § 17200 et seq.) SkyWest, however, cites no authority that the ADA preempts actions to enforce state minimum wage laws or state laws governing meal/rest breaks. Although the ADA has been broadly interpreted as preempting state “enforcement actions having a connection with, or reference to, airline ‘rates, routes, or services,’ ” it has its limits.
7
(Morales v. Trans World Airlines, Inc. supra,
*424 Conclusion
The judgment (order granting summary judgment) is affirmed. SkyWest is awarded costs on appeal.
Gilbert, P. J., and Perren, J., concurred.
A petition for a rehearing was denied October 16, 2007, and the opinion was modified to read as printed above.
Notes
Per diem block time includes standby time and layovers. Assuming an FA stays in a hotel because of a flight stayover, SkyWest pays block time pay ($1.50 or $1.60 an hour) while the FA sleeps, eats, watches television, and engages in other nonwork activities.
Labor Code section 222 provides: “It shall be unlawful, in case of any wage agreement arrived at through collective bargaining, either wilfully or unlawfully or with intent to defraud an employee, ... to withhold from said employee any part of the wage agreed upon.” (Italics added.) Labor Code section 223 provides: “Where any statute or contract requires an employer to maintain the designated wage scale, it shall be unlawful to secretly pay a lower wage while purporting to pay the wage designated by statute or by contract.” (Italics added.)
In
Soldinger v. Northwest Airlines, Inc., supra,
51 Cal.App.4th at pages 358-359, our colleagues in Division Two described the rationale for RLA preemption: “ ‘Congress’ purpose in passing the RLA was to promote stability in labor-management relations by providing a comprehensive framework for resolving labor disputes. [Citations.]’
(Hawaiian Airlines, Inc.
v.
Norris, supra,
Hawaiian Airlines, Inc. v. Norris, supra,
IWC Order No. 9-2001, subdivision 11(D) provides: “If an employer fails to provide an employee a meal period in accordance with the applicable provisions of this order, the employer shall pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each workday that the meal period is not provided.” The same formula applies where the employer fails to provide an employee a rest period. (IWC Order No. 9-2001, subd. 12(B).)
Appellants argue that the commerce clause (U.S. Const., art. I, § 8, cl. 3) was not alleged as an affirmative defense, but waived the point and are precluded from asserting it for the first time on appeal.
(Lyles
v.
State of California
(2007)
SkyWest argues that application of state minimum wage law will result in higher fares, fewer routes, and less service, but the connection is tenuous. A state or local law is “ ‘ “related to” ’ ” a price route or service if it has “ ‘a connection with, or reference to’ ” a price, route, or service.
(American Airlines, Inc. v. Wolens, supra,
