United Airlines California Workers File Suit Due to Wage Statement Violations

Many workers, particularly those who work in the transportation industry, must travel for their job. For example, airline employees often travel and work for their employer in various states. What happens when one state’s employment laws are far more burdensome than the rest? 

The Details of the Case: Ward v. United Airlines, Inc. 

Case No. 16-16415 (9th Cir., Feb. 2, 2021)

United Airlines Granted Summary Judgement by District Court: 

After the District Court granted summary judgment to United Airlines for two consolidated actions brought by certified classes of United pilots and flight attendants that live in California, the Ninth Circuit reversed the summary judgment. The pilots and flight attendants allege that their wage statements from United Airlines violate California Labor Code 226.

Does California Labor Code 226 Apply? 

The panel put the question before the California Supreme Court: does California Labor Code 226 apply? After considering the facts of the cases, the California Supreme Court held that California Labor Code 226 applies if the “employee’s principal place of work is in California.” The California Supreme Court set forth the “Ward test” as a set of principles to define Section 226’s permissible reach. 

Applying Section 226 Under the Ward Test: 

According to the Ward test, Section 226 didn’t fall into either of the “invalid” categories. The panel also did not find merit in the Defendant’s argument that applying the Ward test directly regulates interstate commerce. The panel also rejected United Airlines’ argument that applying Section 226 to plaintiffs under the Ward test violated the dormant Commerce Clause. Instead, the panel held that the Airline Deregulation Act of 1978 and the Railway Labor Act did not preempt the application of Section 226. 

Did United Airlines Comply with Section 226? 

While the California Supreme Court decided Section 226 applied in this case, they did not determine whether United Airlines complied with Section 226. The case was directed to district court to modify the class definitions, conform to the California Supreme Court’s definition of Section 226’s permissible reach, modify the class period in the Ward case to extend the date of judgment, determine if the Defendant complied with Section 226, and if not, determine what relief should be awarded to the Plaintiffs. 

In conclusion, transportation companies with employees based in California are bound by Section 226’s wage statement requirements unless they can prove that complying would pose a significant burden with substantial financial costs.

If you need help with employment law violations in the workplace, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP today. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.