Amicus Curiae Brief — Virgin America, Inc., et al., Petitioners v. Julia Bernstein, et al., Individually and on Behalf of All Others Similarly Situated
Supreme Court briefSep 22, 2021
Ask Donna
What actually matters in this document.
Text
No. 21-260
In the
Supreme Court of the United States
VIRGIN AMERICA, INC., AND ALASKA AIRLINES, INC.,
Petitioners,
V.
JULIA BERNSTEIN, ET AL.,
Respondents.
ON PETITION FOR WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
BRIEF FOR THE CHAMBER OF COMMERCE
OF THE UNITED STATES OF AMERICA
AS AMICUS CURIAE IN SUPPORT OF
PETITIONERS
ANDREW R. VARCOE
STEPHANIE A. MALONEY
U.S. CHAMBER
LITIGATION CENTER
1615 H Street, NW
Washington, DC 20062
(202) 467-5337
GREGORY G. GARRE
Counsel of Record
CAROLINE A. FLYNN
MICHAEL CLEMENTE
LATHAM & WATKINS LLP
555 Eleventh Street, NW
Suite 1000
Washington, DC 20004
(202) 637-2207
gregory.garre@lw.com
Counsel for Amicus Curiae
TABLE OF CONTENTS
Page
TABLE OF AUTHORITIES ..................................... iii
INTEREST OF AMICUS CURIAE ............................1
INTRODUCTION AND SUMMARY OF
ARGUMENT .......................................................2
ARGUMENT ...............................................................5
I.
II.
The Ninth Circuit Has Long Contravened
This Court’s Precedent Under The ADA
And FAAAA .........................................................5
A.
This Court Has Interpreted The
Statutes To Impose A “Significant
Impact” Test ................................................5
B.
For Decades, The Ninth Circuit Has
Applied The “Binds To” Test Instead
.....................................................................7
The Ninth Circuit’s Decision In This Case
Takes
Its
Flawed
Preemption
Jurisprudence To A New Extreme ...................10
III. This Court’s Intervention Is Needed Now .......12
A.
Applying California’s Meal-AndRest-Break Rules To Flight Crews
Would Severely Disrupt The Airline
Industry .....................................................12
B.
The
Ninth
Circuit’s
Outlier
Preemption Regime Also Harms
National Commerce More Broadly...........15
ii
TABLE OF CONTENTS—Continued
Page
CONCLUSION ..........................................................19
iii
TABLE OF AUTHORITIES
Page(s)
CASES
Air Transport Association v. City &
County of San Francisco,
266 F.3d 1064 (9th Cir. 2001)............................7, 8
American Airlines, Inc. v. Wolens,
513 U.S. 219 (1995) ..........................................3, 18
American Trucking Associations v. City
of Los Angeles,
660 F.3d 384 (9th Cir. 2011)..................................8
Augustus v. ABM Security Services,
Inc.,
385 P.3d 823 (Cal. 2016) ......................................10
Brinker Restaurant Corp. v. Superior
Court,
273 P.3d 513 (Cal. 2012) ......................................10
California Trucking Association v.
Bonta,
996 F.3d 644 (9th Cir. 2021), petition
for cert. filed, No. 21-194 (U.S. Aug.
9, 2021) .............................................................8, 16
California Trucking Association v. Su,
903 F.3d 953 (9th Cir. 2018)..................................8
Dilts v. Penske Logistics, LLC,
769 F.3d 637 (9th Cir. 2014)........................7, 8, 15
iv
TABLE OF AUTHORITIES—Continued
Page(s)
Egelhoff v. Egelhoff,
532 U.S. 141 (2001) ............................................8, 9
Morales v. Trans World Airlines, Inc.,
504 U.S. 374 (1992) ...................................... passim
Northwest, Inc. v. Ginsberg,
572 U.S. 273 (2014) .................................. 3, 5, 9, 18
People v. Superior Court,
57 Cal. App. 5th 619 (2020) .................................16
Rowe v. New Hampshire Motor
Transport Association,
552 U.S. 364 (2008) .............................. 3, 6, 7, 9, 18
Ward v. United Airlines, Inc.,
986 F.3d 1234 (9th Cir. 2021)................................8
FEDERAL STATUTES
49 U.S.C. App. § 1302(a)(4) (1988) .............................5
49 U.S.C. § 14501 ........................................................2
49 U.S.C. § 14501(c)(1) ............................................2, 6
49 U.S.C. § 41713(b)(1) ...........................................2, 6
49 U.S.C. § 41713(b)(4)(A) ..........................................6
Pub. L. No. 95-504, 92 Stat. 1705 (1978) ...................5
v
TABLE OF AUTHORITIES—Continued
Page(s)
Pub. L. No. 96-296, 94 Stat. 793 (1980) .....................6
Pub. L. No. 103-305, 108 Stat. 1569
(1994) ......................................................................6
STATE STATUTES
Cal. Lab. Code § 226.7 ..............................................10
Cal. Lab. Code § 226.7(b) ..........................................10
Cal. Lab. Code § 512(a) .............................................10
OTHER AUTHORITIES
83 Fed. Reg. 67,470 (Dec. 28, 2018) ..........................15
Paul Berger, U.S. Ports See Shipping
Logjams Likely Extending Far Into
2022, Wall St. J. (Sept. 5, 2021),
https://on.wsj.com/3DVCXOV..............................17
Doug Carlin, 15 Largest Airports in the
US [Update 2021], USA by Numbers
(Mar. 13, 2021),
https://usabynumbers.com/largestairports-in-the-us/ ................................................13
vi
TABLE OF AUTHORITIES—Continued
Page(s)
Susan Helper & Evan Soltas, Why the
Pandemic Has Disrupted Supply
Chains, The White House (June 17,
2021), https://www.whitehouse.gov/
cea/blog/2021/06/17/why-thepandemic-has-disrupted-supplychains/ ..................................................................18
Industrial Welfare Commission, Order
No. 9-2001 Regulating Wages, Hours
& Working Conditions in the
Transp. Indus. (updated Jan. 1,
2003), https://www.dir.ca.gov/iwc/
Wageorders2003/IWCArticle9.pdf ......................10
Grace Kay, The US shipping crisis is not
going away as 33 cargo ships float off
the coast of LA waiting to dock,
Business Insider (July 26, 2021),
https://bit.ly/3j5JyhF ...........................................17
Jennifer Smith, Chip Shortage Curtails
Heavy-Duty Truck Production, Wall
St. J. (Sept. 3, 2021),
https://on.wsj.com/3yMccJa .................................16
Jennifer Smith, Truckers Expect U.S.
Transport Capacity Crunch to
Persist, Wall St. J. (May 2, 2021),
https://on.wsj.com/3mmWt0K .............................17
vii
TABLE OF AUTHORITIES—Continued
Page(s)
U.S. GAO, National Airspace System:
Initiatives to Reduce Flight Delays
and Enhance Capacity are Ongoing
but Challenges Remain, GAO-05755T (May 26, 2005),
https://www.gao.gov/products/
GAO-05-755T .................................................12, 13
INTEREST OF AMICUS CURIAE1
The Chamber of Commerce of the United States of
America (the “Chamber”) is the world’s largest
business federation. It represents approximately
300,000 direct members and indirectly represents the
interests of more than three million companies and
professional organizations of every size, in every
industry sector, and from every region of the
country—including throughout California.
An
important function of the Chamber is to represent the
interests of its members in matters before Congress,
the Executive Branch, and the courts. To that end,
the Chamber regularly files amicus curiae briefs in
cases, like this one, that raise recurring issues of
concern to the nation’s business community.
The Chamber has a strong interest in this case
because it raises important and recurring questions
concerning the extent to which States may interfere
with the prices, routes, and services of air carriers in
the face of Congress’s decision to expressly preempt
such interference. Many of the Chamber’s members
are either airlines themselves, or transact business on
a nationwide scale and rely on the services of air
carriers in their day-to-day operations. Indeed, the
air carrier industry affects nearly every business in
the United States, whether directly or indirectly, as
well as countless American consumers.
1
No counsel for a party authored this brief in whole or in
part, and no such counsel, any party, or any other person or
entity—other than amicus curiae, its members, or its counsel—
made a monetary contribution intended to fund the preparation
or submission of this brief. Counsel of record for all parties were
timely notified more than 10 days prior to filing, and all parties
have consented to the filing of this brief.
2
If allowed to stand, the Ninth Circuit’s decision
will significantly hamper the airline industry and
prevent air carriers from competing freely and
efficiently. It will also increase costs for businesses
and consumers alike, as air carriers are forced to cope
with the expense of regulatory burdens that Congress
prohibited in passing the Airline Deregulation Act.
Granting the petition and reversing would ensure
that—consistent
with
congressional
design—
businesses and consumers continue to enjoy a full
range of services at prices determined largely by the
free market, rather than a haphazard patchwork of
state regulation.
INTRODUCTION AND
SUMMARY OF ARGUMENT
For decades, the Ninth Circuit has refused to
follow this Court’s preemption precedent under the
Airline Deregulation Act (ADA), 49 U.S.C.
§ 41713(b)(1),
and
the
Federal
Aviation
Administration Authorization Act of 1994 (FAAAA),
id. § 14501. Those statutes expressly preempt all
state laws “related to a price, route, or service” of an
air or motor carrier.
Id. § 41713(b)(1); id.
§ 14501(c)(1). Consistent with their text and history,
this Court has repeatedly held that those provisions
preempt at least any state law that has a “significant
impact” on an air carrier’s price, route, or service.
Despite that clear precedent, the Ninth Circuit has
doggedly applied its own markedly narrower
preemption test. The Ninth Circuit’s outlier approach
creates a direct conflict in the courts of appeals and
flies in the face of this Court’s case law. That
approach also has (and will continue to have) severely
disruptive effects on the interstate transportation
3
industry. The Court should grant the petition and
reverse.
Petitioners have already persuasively explained
the circuit split among the lower courts on the
question presented, Pet. 15-21, and why the decision
below is wrong, id. at 21-27. The Chamber submits
this brief to elaborate upon how the decision is just
the latest example of the Ninth Circuit’s blatant
disregard for this Court’s preemption precedent—and
to reinforce the threat that the decision poses to the
airline industry and national commerce more broadly.
I. This Court’s intervention is necessary to put an
end to an entrenched body of Ninth Circuit
preemption jurisprudence that sharply conflicts with
the decisions of other courts of appeals—and deprives
the airline and transportation industries of the
protections that Congress afforded in the ADA and
FAAAA. Over the last 30 years, this Court has
addressed the preemptive effect of the ADA and
FAAAA in four key cases: Morales v. Trans World
Airlines, Inc., 504 U.S. 374 (1992); American Airlines,
Inc. v. Wolens, 513 U.S. 219 (1995); Rowe v. New
Hampshire Motor Transport Association, 552 U.S.
364 (2008); and Northwest, Inc. v. Ginsberg, 572 U.S.
273 (2014). Consistent with Congress’s expressed
intent, these decisions interpret the ADA and FAAAA
to insulate the airline and transportation industries
from state laws that impose duties on such carriers,
including by preempting “at least” state laws that
have a “significant impact” on carrier prices, routes,
or services. Rowe, 552 U.S. at 370-71 (quoting
Morales, 504 U.S. at 390). Although most lower
courts have followed this Court’s guidance, the Ninth
Circuit has charted its own path that veers further
and further from this Court’s jurisprudence. The
4
decision below—holding that California’s meal-andrest-break laws apply to flight crews because such
laws do not directly “bind” airlines to particular
prices, routes, or services—takes the Ninth Circuit’s
derelict preemption jurisprudence to a new extreme.
II. As petitioners have explained, the Ninth
Circuit’s decision below is wrong and should be
overturned. Enforcing California’s meal-and-restbreak rules against airlines would allow California to
dictate how air carriers assign and manage their
flight crews, which, in turn, will affect airline travel
more generally. California’s regime, for instance,
requires breaks every three-and-a-half to five hours,
during which time the employee must be completely
off-duty. Enforcing those rules would require more
crew members aboard each flight, would create longer
delays between flights, and would undoubtedly cause
significant impacts on carriers’ prices, routes, and
services. That is the very type of law Congress sought
to preempt when it enacted the ADA and FAAAA.
Indeed, it is hard to imagine state laws that more
squarely implicate the concerns that Congress sought
to address.
III. This Court’s intervention is needed because
the decision below threatens to severely disrupt the
airline industry and interstate commerce more
broadly. By allowing California to regulate the
working conditions of flight crews—a decision that
will inevitably open the door to other States doing the
same—the decision below creates precisely the kind
of interference with market-driven uniformity and
efficiency that Congress sought to prevent through
the ADA. Enforcing California’s meal-and-rest-break
laws would also destabilize the airline industry by
reducing the services and routes air carriers are able
5
to offer. And the negative consequences of the Ninth
Circuit’s approach to preemption extend even further,
given the identically worded preemption provision
governing the motor carrier industry in the FAAAA.
This case provides an ideal—and urgently
necessary—opportunity to rein in the Ninth Circuit’s
persistent misapplication of this Court’s preemption
precedent and to vindicate Congress’s deregulatory
design. The petition should be granted.
ARGUMENT
I. THE
NINTH
CIRCUIT
HAS
LONG
CONTRAVENED
THIS
COURT’S
PRECEDENT UNDER THE ADA AND FAAAA
A.
This Court Has Interpreted The Statutes
To Impose A “Significant Impact” Test
In 1978, Congress enacted the Airline
Deregulation Act after “determining that ‘maximum
reliance on competitive market forces’” would lead to
lower airline fares and better airline service. Morales
v. Trans World Airlines, Inc., 504 U.S. 374, 378 (1992)
(quoting 49 U.S.C. App. § 1302(a)(4) (1988)); see Pub.
L. No. 95-504, 92 Stat. 1705 (1978); Northwest, Inc. v.
Ginsberg, 572 U.S. 273, 280-83 (2014) (likewise
emphasizing that Congress enacted the ADA to
“promote ‘efficiency, innovation, and low prices’ in the
airline industry through ‘maximum reliance on
competitive market forces and on actual and potential
competition’” (citation omitted)). To “ensure that the
States would not undo federal deregulation with
regulation of their own,” Congress sharply
circumscribed state authority to regulate the airline
industry by including a broadly worded preemption
provision in the ADA: States are prohibited from
6
“enforcing any law relating to rates, routes, or
services of any air carrier.” Morales, 504 U.S. at 37879 (citation omitted); see 49 U.S.C. § 41713(b)(1).
In 1980, Congress extended its deregulation
efforts from the airline industry to trucking. See
Motor Carrier Act of 1980, Pub. L. No. 96-296, 94 Stat.
793. Then, in 1994, Congress borrowed the ADA’s
preemption language to preempt state trucking
regulation and thereby ensure that the States would
not frustrate its deregulatory objectives. Rowe v. New
Hampshire Motor Transp. Ass’n, 552 U.S. 364, 368
(2008) (citing the Federal Aviation Administration
Authorization Act of 1994, Pub. L. No. 103-305, § 601,
108 Stat. 1569, 1605-06); see 49 U.S.C. § 14501(c)(1)
(preempting States from enacting or enforcing any
law “related to a price, route, or service of any motor
carrier . . . with respect to the transportation of
property”); see also 49 U.S.C. § 41713(b)(4)(A) (similar
provision for combined motor-air carriers).
Consistent with the statutes’ shared text and
history, this Court has instructed that courts should
interpret the preemption language in the ADA and
FAAAA in pari materia. See Rowe, 552 U.S. at 37071. This Court has also long emphasized the statutes’
comprehensive preemptive force. It has held that
Congress’s use of the phrase “relating to”—consistent
with its plain meaning—expresses a “broad preemptive purpose.” Morales, 504 U.S. at 383. It has
made clear that laws bearing a “connection with”
rates, routes, or services qualify. Id. at 384. It has
clarified that preemption may occur even if a state
law is one of general applicability and if its effect on
rates, routes, or services “‘is only indirect.’” Id. at 386
(citation omitted). And it has emphasized that the
state law need not “‘regulate rates, routes, or
7
services’” to be preempted. Id. at 383-86 (citation
omitted).
To underscore the reach of these statutes, the
Court has explained that only those laws that affect
rates, routes, or services in a “‘tenuous, remote, or
peripheral . . . manner’”—like a law proscribing
“gambling”
or
“prostitution”—can
survive
preemption. Id. at 390 (citation omitted); see also
Rowe, 552 U.S. at 370-71, 376 (interpreting FAAAA’s
preemption clause to have same broad scope).
Putting all of that together, this Court has
repeatedly held that the ADA and FAAAA preempt
any state law that has “a ‘significant impact’” on
carrier rates, routes, or services. Rowe, 552 U.S. at
370-71 (quoting Morales, 504 U.S. at 390).
B.
For Decades, The Ninth Circuit Has
Applied The “Binds To” Test Instead
Despite the plain text of the ADA’s and FAAAA’s
preemption provisions—as well as this Court’s
straightforward case law interpreting them—the
Ninth Circuit has for decades followed its own line of
ADA and FAAAA preemption precedent. Instead of
implementing this Court’s “significant impact” test,
the Ninth Circuit has held that a state law is
preempted by the ADA only if it “binds the [air]
carrier to a particular price, route, or service.” Pet.
App. 20a (emphasis added) (quoting Dilts v. Penske
Logistics, LLC, 769 F.3d 637, 646 (9th Cir. 2014)).
The Ninth Circuit first articulated the “binds to”
test in Air Transport Association v. City & County of
San Francisco, 266 F.3d 1064, 1072 (9th Cir. 2001).
There, it interpreted a decision of this Court
construing a different statute, the Employee
Retirement Income Security Act of 1974 (ERISA), as
8
“suggest[ing]” the proper preemption analysis under
the ADA. See id. at 1071-72 (citing Egelhoff v.
Egelhoff, 532 U.S. 141 (2001)). Quoting this Court’s
observation in Egelhoff that the state law at issue
“b[ound] ERISA plan administrators to a particular
choice of rules for determining beneficiary status,” id.
at 1071 (citation omitted), the Ninth Circuit read that
phrase to mean the state law “must compel or bind”
the plan administrator for ERISA preemption to
attach, id. (emphasis added). Turning back to the
ADA, the court concluded that “a local law will have a
prohibited connection with a price, route or service if
the law binds the air carrier to a particular price,
route or service.” Id. at 1072.
In the decades following Air Transport
Association, the Ninth Circuit has repeatedly applied
the “binds to” test in its ADA and FAAAA preemption
decisions. See Dilts, 769 F.3d at 646; California
Trucking Ass’n v. Su, 903 F.3d 953, 964 (9th Cir.
2018) (“‘[T]he question is whether the Ordinance
compels or binds [airlines] to a particular price, route
or service.’” (quoting Air Transp. Ass’n, 266 F.3d at
1074)); American Trucking Ass’ns v. City of Los
Angeles, 660 F.3d 384, 397 (9th Cir. 2011) (describing
the “binds” test as “the proper inquiry”). This past
year was a high-water mark, with the Ninth Circuit
issuing three ADA and FAAAA decisions enforcing
that standard to deem California labor laws not
preempted. See Pet. App. 20a; California Trucking
Ass’n v. Bonta, 996 F.3d 644, 664 (9th Cir. 2021),
(“[G]enerally applicable labor law[s]” are not
preempted unless they “bind, compel, or otherwise
freeze into place a particular price, route, or service of
a . . . carrier . . . .”), petition for cert. filed, No. 21-194
(U.S. Aug. 9, 2021); Ward v. United Airlines, Inc., 986
9
F.3d 1234, 1243 (9th Cir. 2021) (The “ADA and
FAAAA . . . preempt state regulations that bind
carriers to specific prices, routes, or services . . . .”).
But the “binds to” test is doctrinally unsound at its
core. To start with, the Ninth Circuit flatly misread
Egelhoff; this Court was merely describing a sufficient
condition for ERISA preemption, not a necessary
condition. See 532 U.S. at 147. Air Transport
Association also ignored this Court’s far more onpoint statement in Morales that state laws with a
“significant impact” upon airline prices are
preempted under the ADA. 504 U.S. at 390. The
Ninth Circuit also apparently overlooked the Morales
Court’s forceful rejection of the argument that the
ADA “only pre-empts the States from actually
prescribing rates, routes, or service.” Id. at 385-86.
And even when this Court reinforced the “significant
impact” test in subsequent ADA and FAAAA
decisions, see Rowe, 552 U.S. at 370-71, the Ninth
Circuit has refused to revisit its contrary standard.
The Ninth Circuit’s flawed preemption analysis
has not gone unnoticed by this Court. In Ginsberg,
the Court reversed the Ninth Circuit’s holding that a
state-law claim was not preempted because it did not
“force the Airlines to adopt or change their prices,
routes or services” and did not have a “direct effect”
on either “prices” or “services.” 572 U.S. at 279
(emphasis added) (citations omitted); see id. at 284
(finding that the state-law claim “clearly” had the
kind of “connection” to airline prices and services to
warrant preemption).
Unfortunately, the Ninth
Circuit did not get the message. Its continued
misapplication of ADA preemption—even after this
Court’s clear signal in Ginsberg that the court was off
course—requires this Court to intervene once again.
10
II. THE NINTH CIRCUIT’S DECISION IN THIS
CASE TAKES ITS FLAWED PREEMPTION
JURISPRUDENCE TO A NEW EXTREME
In the decision below, the Ninth Circuit doubleddown on its outlier test for when the ADA’s and
FAAAA’s express preemption provisions are
triggered.
In allowing respondents to enforce
California’s meal-and-rest-break rules against air
carriers’ flight crews, the decision below disregards
not only this Court’s precedent, but also the vital
congressional objective of the ADA’s preemption
provision.
California’s Labor Code requires employers to
provide a 30-minute meal period after five hours of
work. See Cal. Lab. Code §§ 226.7, 512(a). The State
further requires an “authorized rest period time” that
is “based on the total hours worked daily at the rate
of ten (10) minutes net rest time per four (4) hours or
major fraction thereof.” Indus. Welfare Comm’n,
Order No. 9-2001 Regulating Wages, Hours &
Working Conditions in the Transp. Indus. § 12(A)
(updated Jan. 1, 2003), https://www.dir.ca.gov/iwc/
Wageorders2003/IWCArticle9.pdf; Cal. Lab. Code
§ 226.7(b). During such breaks, employers must
“relieve employees of all duties and relinquish control
over how employees spend their time.” Augustus v.
ABM Sec. Servs., Inc., 385 P.3d 823, 832 (Cal. 2016).
Employees must also be “free to leave the premises”
during their breaks. Brinker Rest. Corp. v. Superior
Court, 273 P.3d 513, 533-34 (Cal. 2012). What might
be feasible in a warehouse hardly translates to a
confined space traveling over 500 miles per hour at
30,000 feet.
11
Under this Court’s test, it is clear that the ADA
preempts these labor regulations. As the United
States explained in its amicus brief to the Ninth
Circuit, “[t]here can be no serious question that
applying California’s meal and rest break laws to
flight attendants will have a significant impact on the
market forces influencing carrier services and prices.”
Brief for the United States as Amicus Curiae in
Support of Appellants 18, Bernstein v. Virgin Am.,
Inc., No. 19-15382 (9th Cir. Sept. 3, 2019), 2019 WL
4307414 (“United States Amicus Br.”).
Carriers cannot operate flights without a full crew
on duty, and requiring them to take duty-free breaks
would interfere with critical—and tightly scheduled—
operations like boarding, takeoff, landing, and
deplaning, not to mention unplanned contingencies
like weather or actual emergencies. Pet. 23-24. To be
sure, airlines could attempt to rearrange flight
schedules to accommodate breaks between flights,
but that just underscores the problem. That would
have an unavoidable impact on services, routes, and
prices—both
“throughout
the
country
and
internationally.” United States Amicus Br. 22; see
Pet. 24-25. The same goes for the Ninth Circuit’s
proffered solution of adding more paid flight
attendants to the flights themselves, see Pet. App.
18a; that would have the direct effect of taking away
seats from passengers, reducing services, increasing
prices, and negatively impacting routes. Pet. 25-27.
Under the Ninth Circuit’s “binds to” test, however,
none of that matters. The only question is whether
the California regime compels “a particular price,
route, or service.” Pet. 20a (emphasis added) (citation
omitted). Because the answer to that question is (and
invariably will be) no, the Ninth Circuit held that
12
California’s meal-and-rest-break laws could
applied to the airline industry. Pet. 19a-21a.
be
III. THIS
COURT’S
NEEDED NOW
IS
A.
INTERVENTION
Applying California’s Meal-And-RestBreak Rules To Flight Crews Would
Severely Disrupt The Airline Industry
If the decision below stands, it will have dire
effects on airlines. As the United States recognized in
its brief below, enforcing California’s labor law to
govern flight crews will frustrate the congressional
policy underlying ADA preemption by allowing state
regulation, rather than federal regulation and market
forces, to dictate the manner by which air carrier
services will be performed. United States Amicus Br.
18. The result will be precisely the inefficiency,
confusion, and patchwork of state regulation that
Congress sought to avoid.
As the United States has explained, commercial
aircraft operate under tight schedules and require
careful coordination regarding the availability of
runways, gates, and flight crews. Id. at 20-21 (citing
U.S. GAO, National Airspace System: Initiatives to
Reduce Flight Delays and Enhance Capacity are
Ongoing but Challenges Remain, GAO-05-755T at 45 (May 26, 2005), https://www.gao.gov/products/GAO05-755T (GAO Report)).
The Federal Aviation
Administration also conducts extensive coordination
with air carriers to manage airspace, including
planning related to thunderstorms, en-route
congestion, and terminal congestion. Id. at 21 (citing
GAO Report 7-9). Those tasks are particularly
difficult for airports serving major metropolitan
areas, see id., like Los Angeles International Airport,
13
McCarran International Airport, San Francisco
International Airport, Phoenix Sky Harbor
International
Airport,
and
Seattle-Tacoma
International Airport—five of the ten busiest airports
in the United States, see Doug Carlin, 15 Largest
Airports in the US [Update 2021], USA by Numbers
(Mar.
13,
2021),
https://usabynumbers.com/
largest-airports-in-the-us/, and only a few of the large
airports located in the Ninth Circuit.
Requiring air carriers to comply with California’s
meal-and-rest-break laws would substantially
disrupt that already complex coordination. The
proposed options for complying with California’s
laws—adding mid-flight breaks for flight attendants,
hiring more flight attendants, and scheduling longer
ground time between flights—would significantly
affect airline prices by adding labor expenses and
reducing the efficiency and number of flights. See
United States Amicus Br. 21-23. This is all the more
true if—as seems likely—the decision below is
extended to pilots as well as flight attendants. See
Pet. 28.
The Ninth Circuit’s proposed solution is also
unworkable. As petitioners point out, adding a single
flight attendant to a route would increase flightattendant-related costs by 33%. Id. at 26. Nor is it
simply a matter of adding extra employees to the
plane. “Flight attendants . . . often work in flight
‘pairings’; coordinated flights that allow the
attendant to fly to and from one city, always returning
to the attendant’s home base.” United States Amicus
Br. 22. As the United States observed, “[i]f providing
attendants with a state-mandated break caused them
to be replaced by a relief attendant on the next
regularly scheduled flight, the first attendant could
14
be abandoned in an airport that is not their home base
for a significant period.” Id. In other words, not only
would the Ninth Circuit’s solution “require airlines to
hire two flight attendants to do the work of one,” it
would require them to “strand[] both in airports
outside of their home base.” Id. at 23.
The compliance options are even less realistic for
regional airlines, which already have extremely tight
profit margins. See Pet. 26-27. These airlines
specialize in the use of smaller planes that are
carefully calibrated to the size of the market and
demand. These flights already have lower revenue
potential compared to large aircraft flights, and any
of the proposed compliance options—like requiring
the airlines to staff back-up flight attendants or pilots
on flights and then take away scarce seats on planes
from customers—would render many such flights
economically unviable. See id.
And make no mistake: the decision below will have
widespread ramifications in the aviation industry
beyond airlines’ attempts to accommodate the
California rules at issue here. After the Ninth
Circuit’s decision, airlines cannot turn to a single
body of labor law to govern their flight crews. The
Ninth Circuit’s stingy approach to preemption
permits enforcement of not only California law, but
also the different (and sometimes incompatible) labor
requirements of other States as well. Pet. 27.
Layering those additional logistical complications on
top of the already complex requirements of aviation
coordination would be disastrous. It is no surprise
that the United States warned the court below that
imposing labor regimes like California’s on airlines
would “plainly conflict” not just with efforts “to
maximize efficient use of the navigable airspace,” but
15
with “the purposes and objectives of federal safety
regulations.” United States Amicus Br. 4.
B.
The Ninth Circuit’s Outlier Preemption
Regime Also Harms National Commerce
More Broadly
The Ninth Circuit’s flawed preemption test also
has—and will continue to have—grave consequences
well beyond the airline industry. Its misguided
approach has already negatively affected the trucking
industry in particular, which Congress protected from
state laws disrupting rates, routes, and services by
enacting an identical preemption provision in the
FAAAA. The Ninth Circuit has applied the “binds to”
test to hold that California’s meal-and-rest-break
laws are not preempted by the FAAAA and must be
enforced against motor carriers in the State—
notwithstanding the state regime’s significant impact
upon trucking routes and services. Dilts, 769 F.3d at
646-47. Ultimately, the disastrous practical effects of
that decision were averted only by federal
intervention; in the aftermath of Dilts, the Federal
Motor Carrier Safety Administration (FMCSA)
exercised its statutory authority to administratively
exempt truckers from California’s meal-and-restbreak laws. 83 Fed. Reg. 67,470 (Dec. 28, 2018).2
Undeterred, the Ninth Circuit has since applied
the same test to hold that the FAAAA does not
preempt a California worker-classification law that
2
The FMCSA deemed California’s meal-and-rest-break
regime a regulation of “commercial motor vehicle safety” that
was “incompatible” with federal regulation and would “cause an
unreasonable burden on interstate commerce” while providing
“no safety benefit.” 83 Fed. Reg. at 67,473-80.
16
effectively precludes motor carriers from using
independent owner-operators to provide trucking
services. See California Trucking Ass’n, 996 F.3d at
664. That decision also split with other courts, and
the petition of the California Trucking Association et
al. seeking review has been supported by dozens of
stakeholders in the trucking industry (including the
Chamber). See Docket in No. 21-194. The Court
should consider granting that petition alongside this
one, both of which address the Ninth Circuit’s flawed
analysis of the same preemption language.3
Without this Court’s intervention, the Ninth
Circuit’s rulings pose a significant threat to national
commerce more broadly. Because travel and supply
chains are configured for competitive and efficient air
and motor carrier service, prices will rise as carriers’
capacity is reduced and routes become more
circuitous. The ripple effect from this disruption will
harm travelers, consumers, and the national
economy, which are already grappling with travel
disruptions and significant supply-chain delays
caused by the ongoing COVID-19 pandemic.
This fallout could not come at a worse time for the
shipping industry. Currently a global semiconductor
shortage “is short-circuiting heavy-duty truck
production” and as of July 2021, “the backlog of trucks
ordered but not built has nearly tripled from the same
month a year ago, to 262,100.” Jennifer Smith,
3
The petition in Cal Cartage Transportation Express,
LLC v. California, No. 20-1453, seeking review of the California
Court of Appeal’s decision in People v. Superior Court, 57 Cal.
App. 5th 619 (2020), presents the same FAAAA-preemption
question as California Trucking Association v. Bonta—further
illustrating the need for this Court’s review.
17
Chip
Shortage
Curtails
Heavy-Duty
Truck
Production, Wall St. J. (Sept. 3, 2021),
https://on.wsj.com/3yMccJa. And even where trucks
are available, there is simply too much cargo to move
and not enough infrastructure to move it, as
businesses are facing a full-fledged “supply-chain
crisis,” including “port delays . . . near a record high,”
with dozens of ships carrying “tens of thousands of
shipping containers” “waiting off the shore for weeks,
pushing back delivery dates and driving up the cost of
transportation.” Grace Kay, The US Shipping Crisis
Is Not Going Away As 33 Cargo Ships Float Off The
Coast Of LA Waiting To Dock, Business Insider (July
26, 2021), https://bit.ly/3j5JyhF.
All of this results in dramatically higher prices for
businesses and consumers. Consistent with the
broader trend of inflation across the country, U.S.
freight costs are rising disproportionate to demand:
“U.S. freight demand rose 3.4% from February to
March [2021] while . . . freight expenditures rose
nearly twice as fast, at 6.5%.” Jennifer Smith,
Truckers Expect U.S. Transport Capacity Crunch to
Persist,
Wall
St.
J.
(May
2,
2021),
https://on.wsj.com/3mmWt0K. That trend is set to
continue, as “U.S. ports expect congestion” of the
nation’s shipping routes “to continue deep into next
year,” with “logjams stretch[ing] into warehouses and
distribution networks across the country.” Paul
Berger, U.S. Ports See Shipping Logjams Likely
Extending Far Into 2022, Wall St. J. (Sept. 5, 2021),
https://on.wsj.com/3DVCXOV. As the Council of
Economic Advisers has explained, “[t]he situation has
been especially difficult for businesses with complex
supply chains, as their production is vulnerable to
disruption due to shortages of inputs from other
18
businesses.” Susan Helper & Evan Soltas, Why
the Pandemic Has Disrupted Supply Chains,
The
White
House
(June
17,
2021),
https://www.whitehouse.gov/cea/blog/2021/06/17/why
-the-pandemic-has-disrupted-supply-chains.
In short, the Ninth Circuit’s repeated refusal to
give effect to the broad reach of ADA and FAAAA
preemption has created unacceptable uncertainty,
confusion, and obstruction in industries for which
nationwide uniformity is crucial. And the Ninth
Circuit’s latest decision applying its flawed precedent
to the airline industry epitomizes why its rule cannot
stand. The Court should grant this petition and put
an end to the Ninth Circuit’s legally unsound and
commercially disruptive preemption standard.
*****
This Court’s ADA and FAAAA jurisprudence has
been clear. Morales affirmed the breadth of the ADA’s
preemption language, stating that the clause
“express[ed] a broad pre-emptive purpose,” had a
“sweeping nature,” and was “‘broadly worded.’” 504
U.S. at 383-84 (citation omitted). Wolens reiterated a
broad construction of the ADA preemption clause,
applying it to claims relating to “unessential,” as well
as “essential,” services. 513 U.S. at 226. Rowe
affirmed that a claim may have an effect that is “only
indirect” on prices, routes, or services, and still be
preempted. 552 U.S. at 370 (citation omitted). And
Ginsberg expressly rejected the Ninth Circuit’s
crabbed reading of ADA preemption. 572 U.S. at 279.
Other courts of appeals have faithfully applied those
decisions, see Pet. 17-21, yet the Ninth Circuit has
charted a completely different course. This has
19
produced a clear split of authority that itself
threatens national uniformity in this critical area.
In this case, the Ninth Circuit has upped the ante.
Only this Court can address the circuit’s flawed
approach, and it should do so before the court’s
decisions further undermine Congress’s design—and
disrupt the nation’s vital air transportation system.
CONCLUSION
The petition for certiorari should be granted.
Respectfully submitted,
ANDREW R. VARCOE
STEPHANIE A. MALONEY
U.S. CHAMBER
LITIGATION CENTER
1615 H Street, NW
Washington, DC 20062
(202) 467-5337
GREGORY G. GARRE
Counsel of Record
CAROLINE A. FLYNN
MICHAEL CLEMENTE
LATHAM & WATKINS LLP
555 Eleventh Street, NW
Suite 1000
Washington, DC 20004
(202) 637-2207
gregory.garre@lw.com
Counsel for Amicus Curiae
September 22, 2021
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.