A Colorado federal judge has allowed key parts of a lawsuit filed by Airlines for America (A4A) to proceed, as the airline lobbying group challenges the state's Colorado Healthy Families and Workplaces Act. U.S. District Judge Daniel D. Domenico rejected the state’s request to dismiss claims related to the Airline Deregulation Act and the U.S. Constitution’s commerce clause, but dismissed the group’s allegations under the Railway Labor Act (RLA).

Airlines for America Sick Leave : Background of the Case

Airlines for America, representing major carriers like American Airlines, United, FedEx, and UPS, filed suit in September 2023 against Scott Moss, head of the Colorado Department of Labor’s Division of Labor Standards and Statistics. The group argues that Colorado’s 2021 law, which mandates 48 hours of paid sick leave for employees, negatively impacts airline pricing, routes, and services, thus violating the Airline Deregulation Act (ADA) and the commerce clause.

The state moved to dismiss the case, citing precedents where similar state labor laws were upheld by the Ninth Circuit. However, Judge Domenico concluded that A4A’s claims under the ADA require further fact-finding and cannot be dismissed outright at this stage. The judge ruled that A4A has plausibly argued that the sick leave law could interfere with airline prices and services, warranting further examination.

ADA and Commerce Clause Claims

The ADA preempts state laws that directly relate to airline prices, routes, or services, and A4A claims Colorado’s sick leave law does just that. Although the state cited cases rejecting similar claims, Judge Domenico emphasized that such decisions were made after full discovery and fact-intensive inquiries. A4A also argued that the sick leave law impedes interstate commerce, in violation of the commerce clause, by affecting airline operations across state lines.

Judge Domenico sided with A4A in keeping the commerce clause claim alive, acknowledging that the law could hinder the flow of passengers and cargo across state borders. The judge noted that determining whether the law presents a burden that necessitates national uniformity will require further factual investigation.

Airlines for America Sick Leave : Railway Labor Act Dismissal

Judge Domenico, however, dismissed A4A's claim under the Railway Labor Act. The group contended that the sick leave law undermines collective bargaining agreements between airlines and unions. The judge disagreed, stating that the RLA is primarily concerned with the fairness of the bargaining process, not with specific contract terms. The Colorado law applies equally to union and nonunion employees, and does not interfere with core elements of collective bargaining such as strikes or lockouts.

Next Steps

With the dismissal of the RLA claim, the focus will now shift to examining the ADA and commerce clause claims. The case will proceed to discovery, where A4A will need to provide evidence supporting its contention that Colorado’s sick leave law significantly disrupts airline operations.