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
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.
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
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"),
Plaintiffs, defendant and intervenors all move for summary judgment as to RUIA preemption. Plaintiffs argue RUIA preempts all state laws providing paid leave and benefits to railroad employees, particularly those provided under the California Act. Pls.' Mem. P & A. at 2-3, 9, 11-15, 17 n.7, ECF No. 49-1. Defendant and intervenors oppose and cross-move for summary judgment, arguing the California Act does not fall within RUIA's narrow preemptive domain. See Def.'s Mot., ECF No. 49; Intervenor's Mot., ECF No. 53. Plaintiffs oppose both cross-motions jointly. Pls.' Opp'n, ECF No. 60. Defendant and intervenors reply separately. Def.'s Reply, ECF No. 61; Intervenor's Reply, ECF No. 62. The United States is not a party but filed a statement defending its "substantial interest in ensuring that the preemptive reach of section 13(b) of [RUIA] is not enlarged in a manner that would unduly interfere with the states' traditional police powers in establishing minimum labor standards...." U.S. Statement at 1, ECF No. 58;
II. PREEMPTION GENERALLY
The Constitution declares the laws of the United States "the supreme Law of the Land; ... any Thing in the Constitution or Laws of any state to the Contrary notwithstanding." U.S. Const. art. VI, cl. 2. This provision spawned the notion that if federal and state law conflicts, the former "preempts" the latter. Preemption can be express. Louisiana Public Serv. Comm'n v. FCC ,
A. Presumption Against Preemption
Generally, as a starting point, there is a presumption against preemption. Cipollone ,
Here, although employee sickness benefits arguably are traditionally the subject of state regulation, Cal. Div. of Labor Standards Enforcement v. Dillingham Constr., N. A., Inc. ,
B. Express Preemption Domain
The parties interpret the scope of RUIA's express preemption clause differently. See
1. Plain Language
To carve out limitations to an express preemption clause, the court must identify the precise domain the express language preempts. Medtronic, Inc. v. Lohr ,
Here, RUIA's preemption provision, section 13(b) of
Congress makes exclusive provision ... for the payment of sickness benefits for sickness periods ... based upon employment (as defined in this subchapter). No employee shall have or assert any right to ... sickness benefits under a sickness law of any State ... based upon employment (as defined in this chapter)....
2. Statutory Context and Congressional Purpose
"[T]he centerpiece of any preemption analysis is congressional purpose," and "the statute's language, structure, subject matter, context, and history ... help courts determine a statute's objectives and thereby illuminate its text." PG & E. Co. v. Cal. ex rel. Cal. Dep't of Toxic Substances Control ,
Here, RUIA's purpose illuminates its preemptive scope. RUIA creates a national unemployment insurance program for railroad workers and "remove[s] [them] from the coverage of [state] unemployment insurance acts" by preempting state laws that offer similar programs for those workers. H.R. Rep. No. 75-2668, at 1, 2;
Defendants direct the court to the Report of the Senate Committee on Interstate Commerce on RUIA's 1946 Amendment, which indicates RUIA's preemptive scope was limited to "similar" state sickness benefits. That report states, in pertinent part:
[S]ection 13(b) of the present unemployment insurance law preempts to the Federal Government the field of railroad unemployment insurance so as to exclude State unemployment compensation laws from the field and thus to protect employers from duplicate liability. The amendments made by this section of the bill extend that preemption to the sickness benefits provided by the bill.
Suppl. S. Rep. No. 79-1710, at 26 (1946). The report explains preemption was limited to the type of sickness benefits "provided by this section of the bill," meaning benefits that compensate railroad employees when they are physically incapable of working because of their own injury or sickness.
The meaning of "sickness benefit" as used in RUIA therefore delineates the scope of preemption here. While RUIA does not explicitly define "sickness benefits," see generally
C. The California Act
Having defined the scope of RUIA preemption in this way, the court assesses which California Act provisions, if any, it reaches. The California Act offers covered employees an hour of paid sick leave for every thirty hours worked or a minimum of twenty-four hours of paid sick leave per year.
RUIA preempts some of these California Act provisions and not others. Specifically, RUIA preempts the provisions that allow railroad employees to use accumulated paid leave on days when they cannot work because of their own sickness or injury. See CSX Transp., Inc. v. Healey ,
Defendants have not persuaded the court that, because these benefits attach without a waiting period and in smaller increments or are otherwise not "identical" to RUIA's sickness benefits, they escape RUIA's preemptive reach. But RUIA does not preempt the California Act provisions that allow railroad employees to use their paid sick leave on days spent caring for family members or seeking protection from domestic violence, sexual assault or stalking. See
D. Severability of the California Act
Because RUIA preempts only part of the California Act, the severability doctrine dictates whether the court invalidates the entire Act as applied to plaintiffs' employees, or only the preempted provisions. "Because a court may not use severability as a fig leaf for judicial legislation, courts have fashioned limits on when a statute may be severed." Vivid Entm't, LLC v. Fielding ,
California law limits severability to instances where the statute's invalid provisions are grammatically, functionally and volitionally separable from the valid provisions. Vivid Entm't ,
Here, the California Act does not have a severability clause and the parties dispute the severability of the non-preempted provisions. Although plaintiffs contend that without a severability clause the court must invalidate the entire Act, Pls.' Opp'n 14, 20, severability does not depend on the presence of such a clause, see Alaska Airlines v. Brock ,
Rather, the analysis turns on the interplay and interdependence of the Act's preempted and non-preempted provisions. One provision within the California Act lists the circumstances that trigger an employee's paid sick leave. See
(a) Upon the oral or written request of an employee, an employer shall provide paid sick days for the following purposes:
(1) Diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee oran employee's family member.
(2) For an employee who is a victim of domestic violence, sexual assault, or stalking, the purposes described in subdivision (c) of Section 230 and subdivision (a) of Section 230.1.
Removing these three words neither changes the meaning nor the function of the remainder of this provision or the statute at large. Thus, the provision remains grammatically and functionally intact, as applied to railroad employees. Vivid Entm't ,
Also, in passing the California Act, the Legislature referenced specific rationales and economic benefits associated only with these remaining provisions, which demonstrates volitional separability. See, e.g. , 2014 Cal. Stat. c. 317 (A.B. 1522), §§ 1(i), 2 (explaining intent to give employees time to address "the health needs of their families" and their "significant elder care responsibilities."); see also § 2 (declaring the goal of "[p]rovid[ing] economic security to employees in California who take time off from work for reasons related to domestic violence or sexual assault."). The Legislature drew further connections between domestic violence and workplace productivity, finding that "[a]ffording survivors of domestic violence and sexual assault paid sick days is vital to their independence and recovery,"
Accordingly, the court severs the three words in section 246.5(a)(1) -"an employee or"-that allow railroad employees to use paid sick leave on days they cannot work because of their own sickness, injury or pregnancy/childbirth reasons.
III. CONCLUSION
The court GRANTS in PART and DENIES in PART each motion for partial summary judgment. The court finds RUIA preempts the California Act to the extent the latter allows railroad employees to use paid sick days when they cannot work because of their own illness or injury. RUIA does not preempt the Act to the extent it allows these employees to use
IT IS SO ORDERED.
This resolves ECF Nos. 49, 51, 53.
Notes
The three MESTL provisions covered by the First Circuit's remand for further preemption and severance analyses, are virtually identical to the California Act provisions at issue here. See Mass. Gen. Laws Ann. ch. 149, § 148C(c)(1) (paid leave to "care for the employee's child, spouse, parent, or parent of a spouse, who is suffering from a physical or mental illness, injury, or medical condition that requires home care, professional medical diagnosis or care, or preventative medical care"); (c)(3) (paid leave to "attend the employee's routine medical appointment or a routine medical appointment for the employee's child, spouse, parent, or parent of spouse"); (c)(4) (paid leave to "address the psychological, physical or legal effects of domestic violence....").
Railroad Retirement Board regulations confirm that RUIA sickness benefits attach only when an absence is because of an employee's own condition or a family member's needs related to sickness. See
To be eligible for sickness benefits, you must be unable to work because of illness or injury. A 'day of sickness' is a day on which you meet this condition and for which you did not receive any pay and have filed an application for sickness benefits and a statement of sickness signed by your doctor or other authorized individual. This statement provides evidence of your medical condition and its expected duration.
Ex. A at 7-8, Intervenor's Mem., ECF No. 54-1.
