DENVER (CN) — A Denver judge on Monday rejected Southwest Airlines’ motion to dismiss a lawsuit filed by unionized flight attendants claiming it struck an illegal settlement with the Colorado Department of Labor and Employment largely exempting it from the state’s paid sick leave requirements.
But Second Judicial District Judge Kandace Gerdes tossed the union’s claims against the state agency in a separate order also issued Monday.
“The court finds that plaintiff has associational standing, and that plaintiff presents an actual controversy,” Gerdes wrote in a 12-page order denying Southwest’s motion to dismiss.
Transport Workers Union of America Local 556 represents 20,000 Southwest flight attendants nationwide, including those based in Denver. The union sued Southwest and the Colorado Department of Labor and Employment in August 2023 claiming a backroom settlement deprived flight attendants of their state-mandated paid sick leave.
Though Gerdes found the union’s standing and controversy survived the motion to dismiss, she said the plaintiffs need involve all members to avoid duplicitous litigation.
“Based on Southwest’s argument that a declaration in Southwest’s favor would not be binding on plaintiff’s members and could lead to duplicative litigation on the same issue, the court finds that this argument speaks directly to the express language of C.R.C.P. 57(j) and section 13–51–115, which states ‘[w]hen declaratory relief is sought, all persons shall be made parties who have or claim any interest which would be affected by the declaration, and no declaration shall prejudice the rights of persons not parties to the proceeding,’” Gerdes, an appointee of Democratic Governor John Hickenlooper, wrote.
The Legislature passed the Healthy Families and Workplaces Act in 2020, requiring employers to offer workers six days of paid leave annually to treat their own illnesses and injuries or to care for family members who become ill or injured.
In the complaint, the union contends Southwest Airlines threatened to fire workers who took time off to care for sick children and maintained a “retaliatory points” system, docking workers for taking time off. The company also required workers to obtain a doctor’s note to receive excused leave.
In March 2022, the Colorado Department of Labor and Employment fined Southwest $1.3 million for violating the law. The airline sued the state in federal court in May 2022 and appealed the agency’s decision in the Denver County court in January 2023. In July 2023, Southwest struck a settlement with the state to dismiss all suits in exchange for “the exemption it always sought,” the union claims in its subsequent lawsuit.
Under the 2023 settlement, Southwest paid Colorado $133,140, and the state agreed to not investigate claims made against the airline’s paid sick leave program citing a collective bargaining agreement exemption, typically applied to sick leave packages that are equal to or greater than the state’s required six days.
The union sued the state and airline in August 2023, asking the court to invalidate the settlement and declare that Colorado-based flight attendants were entitled to paid sick leave under the Healthy Workers and Families Act.
Gerdes found the collective bargaining exemption being granted in the settlement actually barred the union from establishing the standing needed to challenge said settlement.
“On its face, then, the exemption divests plaintiff of standing under the Healthy Workers and Families Act, because collective bargaining agreements are explicitly excluded from the enforcement right outlined in the act,” Gerdes wrote in an 11-page order granting the state’s motion to dismiss the claims it faced.
Upon review, Gerdes found the state correct to settle with Southwest, leaving the union a third party unable to challenge the state’s role.
“It is unrefuted that the settlement agreement resolved disputed claims at the state and federal trial court levels, as well as an administrative appeal,” Gerdes wrote. “The question is if/how that impacts plaintiff. The court finds that prudential considerations of Colorado law and public policy encourage settlement, and settlement was accomplished by and between the affected parties. Plaintiff’s decision thereafter to criticize and attempt to protect its membership is separate and apart from the spirit and intent of prudential considerations.”
Gerdes indicated she intends to schedule a trial between the Transportation Workers Union and Southwest within a year.
The union is represented by Towards Justice attorney Valerie Collins, who did not immediately respond to an inquiry for comment.
A spokesperson for Southwest declined to comment.