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Employers the transportation industry earned a rare win when an 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?

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