SOUTHWEST AIRLINES FILES LAWSUITS IN RESPONSE TO $1.3M COLORADO FINE
July 22, 2022
After a lengthy investigation, the Department of Labor & Employment of Colorado (“CDLE”) found Southwest Airlines to be in violation of multiple labor laws and imposed a fine of $1.3 million on the airline. This amount consists of $887,600 in fines for Southwest’s refusal to give sick leave as provided for by the Colorado Healthy Families and Workplaces Act (“HFWA”) and $443,800 for retaining provisions dictating the possibility of forfeiting earned vacation pay and failing to give notice of wage and hour rights.
Southwest’s response to the fine came in the form of two lawsuits, one aiming to stay the enforcement of the actions and fines imposed by CDLE and another aiming to stop the state from enforcing the HFWA. The first suit ended with the refusal of an administrative judge to stay the order. The second lawsuit, if successful, could impact the enforcement of HFWA in general. Southwest’s arguments revolve around what it sees as a violation of the Commerce Clause of the U.S. Constitution by the HFWA which it argues conflicts with the Railway Labor Act “RLA” and the Airline Deregulation Act. More specifically, the alleged clash regards collective bargaining agreements (“CBAs”) with Southwest arguing they fall under a statutory exemption under which the RLA obliges the company to maintain CBAs agreed to under the Act even if they violate the requirements posed by the HFWA. The CDLE counters that CBAs can be exempt from the HFWA provided they grant more benefits than what the state law dictates. Moreover, it accuses Southwest of basing its arguments on a “willful misreading – or misinterpretation – of “HFWA”. Southwest objected to this argument by claiming that if other states were allowed to proceed and follow Colorado’s example to impose individual rules impacting interstate commerce, there would be a cacophony of laws allowing for employee leaves that would destabilize air carriers by leaving them exposed to federal laws requiring a certain number of personnel for each flight.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com 202-659-6622) or Drew Derco (dderco@eckertseamans.com 202-659-6665).
*Editor’s Note: We would like to give special thanks to Summer Intern, Thiseas Efthymiou for his contributions to this month’s posts.
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