Alaska Airlines, Inc. v. Oregon Bureau of Labor
Opinion
Lead Opinion
Canby, J.
The question on appeal is whether the arrangement by which Alaska Airlines, Inc., pays its employees for sick leave is subject to the federal Employee Retirement Income Security Act (“ERISA”). If it is not, then Oregon may apply its parental leave laws to require Alaska Airlines to permit employees to utilize sick leave for family leave purposes, such as care of sick children. We conclude that ERISA does not apply to Alaska Airlines’ sick leave payment system, and that Oregon may apply its law.
BACKGROUND
ERISA regulates “employee welfare benefit plans,” which include plans that provide employees “benefits in the event of sickness.” 29 U.S.C. § 1002 (1). ERISA also broadly preempts state laws relating to any employee benefit plan. 29 U.S.C. § 1144 (a). A regulation of the Secretary of Labor, however, excludes certain “payroll practices” from the application of ERISA. It provides that an “employee benefit welfare plan” shall not include:
29 C.F.R. § 2510.3 -l(b)(2). The legal question before us is whether Alaska Airlines’ sick leave payment system is an ERISAregulated plan, or an excepted payroll practice.
*813 Alaska Airlines employees are entitled to certain amounts of sick…