Employers in the transportation industry earned a rare win when a California appeals court held that a federal law covering railroad employees preempts sick leave provisions under California law. In short, this means you do not have to comply with California's sick leave laws for railroad workers and need only follow the federal Railroad Unemployment Insurance Act (RUIA).
The 9th U.S. Circuit Court of Appeal's July 26 ruling relies heavily on the plain language of the RUIA and patently rejects the California Labor Commissioner's attempts to draw distinctions between the benefits provided under RUIA and California's sick leave laws. The ruling simplifies the leave requirements for railroad employers and paves the way for additional favorable rulings in situations where Congress has made clear that federal rules and regulations supersede state law.
What do you need to know about the ruling and its broader implications?
At the heart of this case are two pieces of legislation: RUIA and California's Healthy Workplaces, Healthy Families Act (HWHFA).
The RUIA was passed in 1938 to provide unemployment benefits for railroad employees. In 1946, Congress amended the statute to also provide railroad employees with "sickness benefits." These benefits, which amount to 60 percent of daily pay, are available "for each day of sickness after the fourth consecutive day of sickness in a period of continuing sickness." The RUIA also contains an express preemption provision that precludes...
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