California Trucking Association et al v. Becerra et al
Filing
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ORDER: (1) GRANTING MOTION TO INTERVENE, DOC #11 ; (2) DENYING AS MOOT MOTION FOR LEAVE TO FILE, DOC #18 ; and (3) DENYING AS MOOT EX PARTE MOTION TO SHORTEN TIME, DOC #19 . Signed by Judge Roger T. Benitez on 1/14/2019. (sjm)
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FILED
I JAN~ 1 4 2019 J .
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CLERK US DI~: :f'i!CT COURT
SOUTHERN 'JISTPiC T CW Ci'\LIFORNIA
BY
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DEPUTY
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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California Trucking Association, et al.,
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Case No.: 3:18-cv-02458-BEN-BLM
Plaintiffs,
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V.
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Attorney General Xavier Becerra, et al.,
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Defendants.
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ORDER:
(1) GRANTING MOTION TO
INTERVENE, [Doc. 11];
(2) DENYING AS MOOT MOTION
FOR LEAVE TO FILE, [Doc.18]; and
(3) DENYING AS MOOT EXPARTE
MOTION TO SHORTEN TIME, [Doc.
19].
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International Brotherhood of Teamsters moves for leave to intervene as of right
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under Federal Rule of Civil Procedure 24(a)(2) and in the alternative, for permissive
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intervention under Rule 24(b ).
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GRANTED, and IBT's Motions for Leave and to Shorten Time, [Docs. 18, 19], are
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DENIED as moot.
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[Doc. 11.] For the following reasons, the motion is
I.
BACKGROUND
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Plaintiffs California Trucking Association, Ravinder Singh, and Thomas Odom filed
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suit on October 25, 2018, to challenge the constitutionality ofindustrial Commission Wage
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Order No. 9, as interpreted by the California Supreme Court in Dynamex Operations West,
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Inc. v. Superior Court, 232 Cal. Rptr. 3d 1 (Cal. 2018). [Doc. 1.] Wage Order 9 establishes
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minimum wage, overtime, and other basic labor standards protections for employees in the
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transportation industry, including International Brotherhood of Teamsters' ("IBT")
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1 members. Plaintiffs' lawsuit contends the Dynamex standard for determining whether a
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worker in the transportation industry is an employee or independent contractor for purposes
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of California Wage Orders is preempted by the Federal Aviation Administration
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Authorization Act and violates the Commerce Clause of the United States Constitution.
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[Doc. 1, p. 4.]
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The IBT now moves to intervene in Plaintiffs' lawsuit as a matter of right under
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Federal Rule of Civil Procedure 24(a)(2). Specifically, IBT seeks to intervene to defend
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against Plaintiffs' claims, which attack the constitutionality of Wage Order 9. In the
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alternative, IBT seeks permissive intervention under Rule 24(b ). Plaintiffs oppose IBT' s
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motion. [Doc. 15.] The three Defendant California officials (the Attorney General, the
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Acting Director of the California Department of Industrial Relations, and the Labor
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Commissioner) do not oppose. [Doc. 14.]
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II.
REQUIREMENTS FOR INTERVENTION, RULE 24(a)
For intervention as of right under Federal Rule of Civil Procedure 24(a), the
proposed intervenor must satisfy four requirements:
(l)the motion must be timely;
(2)the applicant must claim a "significantly protectable interest" in the action;
(3)the disposition of the action must as a practical matter impair or impede the
applicant's ability to protect that interest; and
(4) the applicant's interest may be inadequately represented by the other parties.
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Allied Concrete and Supply Co. v. Baker, 904 F.3d 1053, 1067 (9th Cir. 2018).
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evaluating whether Rule 24(a)(2)'s requirements are met, the Court should follow
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"practical and equitable considerations" and construe the Rule "broadly in favor of
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proposed intervenors." United States v. City of Los Angeles, 288 F.3d 391, 397 (9th Cir.
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2002). Courts do so because "[a] liberal policy in favor ofintervention serves both efficient
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resolution of issues and broadened access to the courts." City of Los Angeles, 288 F.3d at
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397-98. The Court considers each Rule 24(a) requirement in turn.
In
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1. Timeliness
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As to the first requirement, the Court finds IBT's motion to intervene is timely.
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Three factors are considered: ( 1) the stage of the proceeding at which intervention is
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sought; (2) any prejudice to existing parties; and (3) the reason for and length of any delay.
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United States v. Oregon, 913 F.2d 576, 588-89 (9th Cir. 1990). Here, IBT sought to
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intervene at the very outset oflitigation before any responsive pleading had been filed. The
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Rule 26( f) conference had not occurred, discovery had not commenced, and the Court has
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not ruled on any substantive issues. No existing parties contend the timing ofIBT's motion
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will result in prejudice. Accordingly, this requirement is satisfied. See, e.g., Northwest
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Forest Resource Council v. Glickman, 82 F.3d 825, 837 (9th Cir. 1996) (motion to
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intervene deemed timely because it was filed before any proceedings had taken place with
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no party prejudice because no substantive rulings were yet made).
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2. Significantly Protectable Interest
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Second, IBT must demonstrate a "significantly protectable interest" in the case, a
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requirement that should be construed expansively. See Cascade Natural Gas Corp. v. El
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Paso Natural Gas Co., 386 U.S. 129, 132-36 (1967). Under the liberal policy favoring
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intervention, an intervenor's interest is "significantly protectable" under the Ninth Circuit's
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test when it "is protectable under some law, and ... there is a relationship between the
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legally protected interest and the claims at issue," such that the intervenor may "suffer a
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practical impairment of its interests as a result of the pending litigation." Wilderness Soc '.Y
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v. US. Forest Serv., 630 F.3d 1173, 1177 (9th Cir. 2011) (en bane).
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IBT argues its interest in the present case is significantly protectable because it
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represents the very workers who are protected by Wage Order 9's minimum wage,
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overtime, and other employment safeguards, as interpreted by Dynamex. 1 Indeed, IBT has
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IBT represents roughly 260,000 members in California who work in various
professions, including as freight drivers, bus drivers, parcel delivery drivers, solid waste
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1 challenged numerous companies' misclassifications of employees as independent
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contractors over the years. If Plaintiffs successfully narrow Wage Order 9's coverage, IBT
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argues, its members who want to work as employees rather than independent contractors
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will lose job opportunities they would otherwise be entitled to under Dynamex.
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Plaintiffs respond that IBT's alleged "interest" is only to safeguard Dynamex, despite
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that decision's "frustration [of] Congress's intent in deregulating the trucking industry and
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unlawfully restrict[ing] interstate commerce." [Doc. 15, p. 5-6.] Plaintiffs' argument is
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not persuasive. Rather than disputing IBT's alleged interest in the lawsuit, Plaintiffs
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merely argue the merits of the underlying claims IBT seeks to defend against. Moreover,
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the Ninth Circuit has recognized labor organizations like IBT have "significantly
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protectable interests," justifying their intervention when businesses challenge the validity
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of laws promoting labor standards for the labor organizations' members.
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For example, in Californians for a Safe and Competitive Dump Truck
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Transportation v. Mendonca, 152 F.3d 1184 (9th Cir. 1998), the Court considered IBT's
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intervention to protect its members' interests in receiving appropriate wages. The Ninth
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Circuit found IBT could intervene as of right because ofIBT members' "significant interest
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in receiving a prevailing wage for their services." Id. at 1190; see also Allied Concrete,
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904 F.3d at 1067-68 (reiterating that IBT members had a significant interest in case
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challenging the applicability of prevailing wage laws to delivery drivers of concrete).
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Moreover, like the present case, the Eastern District of California recognized IBT has the
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"requisite protectable interest" in Wage Order 9, as interpreted by Dynamex, "because the
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misclassification of transportation workers as independent contractors would affect the
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wages and job opportunities ofIBT members." Western States Trucking Ass 'n v. Schoorl,
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2018 WL 5920148, at *2 (E.D. Cal. Nov. 13, 2018). For the same reasons, the Court finds
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IBT satisfies the second requirement.
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and recycling drivers, newspaper drivers, local and interstate delivery and distribution
drivers, and drayage drivers at California seaports.
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3. Practical Impairment of Interest
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As to the related third requirement, whether denying intervention "will result in
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practical impairment" for IBT's interests, the Ninth Circuit's decisions in Allied Concrete
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and Mendonca are determinative. In both cases, the Court found the inquiry satisfied
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because invalidation of the wage law being challenged would impair IBT and its members'
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interests. Allied Concrete, 904 F.3d at 1068; Mendonca, 152 F.3d at 1190. Likewise, here,
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IBT argues that an adverse finding invalidating Dynamex's standard for interpreting Wage
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Order 9 "would impair ... [IBT's] efforts to fight misclassification and to ensure that its
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members' employers are not underbid by competitors that save costs by misclassifying
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their drivers as independent contractors." [Doc. 11-1, p. 13.] Indeed, as in Allied Concrete
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and Mendonca, whether IBT' s interest is impaired turns on whether the law is or is not
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invalidated. Allied Concrete, 904 F.3d at 1068; Mendonca, 152 F.3d at 1190. Thus, this
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requirement is also satisfied here.
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4. Adequate Representation
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Finally, the fourth requirement asks whether the intervenor's interest is inadequately
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represented by existing parties. The burden of this requirement "should be treated as
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minimal" and is satisfied by showing only that "representation of [the intervenor's] interest
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'may be' inadequate." Trbovich v. United Mine Workers, 404 U.S. 528, 539 n. 10 (1972)
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(emphasis added). Moreover, it is not the quality of the existing parties' representation that
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matters, but instead, whether the existing parties will "undoubtedly make all of the
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intervenor's arguments" and whether the intervenor "offers a necessary element to the
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proceedings that would be neglected." Sagebrush Rebellion, Inc. v. Watt, 713 F.2d 525,
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528 (9th Cir. 1983).
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Courts routinely grant labor unions leave to intervene in lawsuits filed against
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California public officials to invalidate state laws protecting the union members'
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employment interests. For such cases, courts recognize that the interests of the labor
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intervenors in protecting their members are more "narrow" and "parochial" than California
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State officials' broad and more abstract interest in defending the laws of the State. See,
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1 e.g., Allied Concrete and Supply Co. v. Baker, 904 F.3d 1053 (9th Cir. 2018) ("IBT's
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interests are potentially more narrow than the public's at large, and the State's
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representation of those interests 'may have been inadequate.") (emphasis in original)
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(quoting Mendonca, 152 F.3d at 1190); Air Conditioning Trade Ass 'n v. Baker, 2012 WL
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3205422, at *5 (E.D. Cal. July 31, 2012) (granting labor organization leave to intervene as
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of right in contractors' challenge to standards for expansion of state-approved
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apprenticeship programs based on finding that representation by existing parties was
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inadequate because "the state defendants have a broader interest than [the union] as the
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proposed intervenor"); Golden Gate Rest. Ass 'n v. City and County ofSan Francisco, 2007
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WL 1052820, at *4 (N.D. Cal. Apr. 5, 2007) ("[T]he Unions' members here have a personal
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interest in the enforcement of the Ordinance" because "the Defendant City and County of
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San Francisco represents the public generally, including businesses and employers who
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may claim to be harmed by the passage of the Ordinance.").
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Plaintiffs argue the existing State defendants will adequately represent IBT's
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interests by virtue of defending their own law. The Ninth Circuit's findings in Mendonca
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and Allied Concrete, however, are dispositive on this issue and say otherwise. See Allied
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Concrete, 904 F.3d at 168; Mendonca, 152 F.3d at 1190. In both cases, the Ninth Circuit
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considered whether the State defendants "adequately" represented IBT's interests in cases
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in which plaintiffs challenged state wage laws. And in both cases, the Ninth Circuit found
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the State defendants' representation of IBT's interests "may have been inadequate,"
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thereby requiring intervention as of right. Specifically, the Ninth Circuit held that "because
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the employment interests of IBT's members were potentially more narrow and parochial
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than the interests of the public at large, IBT demonstrated that the representations of its
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interests by [existing parties] may have been inadequate." Mendonca, 152 F.3d at 1190;
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see also Allied Concrete, 904 F.3d at 168 (reversing district court's denial of intervention
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as of right to IBT for same reasons); see also Western States Trucking Ass 'n v. Schoorl,
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2018 WL 5920148, at *2 (E.D. Cal. Nov. 13, 2018) (in similar lawsuit alleging
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unconstitutionality of Wage Order 9 against State defendants, finding the Ninth Circuit's
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1 decisions dispositive on the "adequacy" requirement, thereby mandating IBT's
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intervention as of right).
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IBT makes the same argument here. As IBT emphasizes, "California officials must
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represent not only the interests of employees who benefit from the Dynamex rule, but also
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the interests of companies that may oppose the increased regulation of their businesses,
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and the interests of the general public." [Doc. 11-1, p. 15.] IB T further argues that because
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"state officials may change their positions over time based on input from other stakeholders
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or be replaced by officials who do not share the same views," its interests may not be
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adequately represented where IBT "has a more specific interest in ensuring that companies
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do not undercut labor standards by misclassifying workers as independent contractors."
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[Id.]
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members, "its position is less susceptible to changes." [Id.]
IBT contends that because of its legal obligation to represent the interests of its
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Finally, IBT argues that its intimate and detailed knowledge of the trucking industry
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and the effects of classifying workers as independent contracts "offers a necessary element
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to the proceedings that would be neglected" without IBT's participation.
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Rebellion v. Watt, 713 F.2d 525, 528 (9th Cir. 1983) (explaining that the intervenor's
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expertise and different perspective offered "a necessary element" that would be neglected).
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For example, IBT points to assertions about the trucking industry in Plaintiffs' Complaint,
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assertions that IBT argues cannot fairly be left to the State defendants to potentially leave
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unchallenged. Indeed, IBT's Motion for Leave to File a Memorandum in Support of
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Defendants' Motion to Dismiss reflects the unique expertise IBT argues is "a necessary
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element." See Doc. 18-1 ("In the proposed ... brief, the IBT offers unique legal authority
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not otherwise cited by the parties, ... identifies an additional reason why plaintiff[] does
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not have standing to assert its claims," and "presents its analysis from the distinct
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perspective of the workers who are directly impacted by the [Wage Order's] protections.").
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Accordingly, IBT has carried its "minimal" burden of showing the State defendants'
Sagebrush
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1 representation 'may be' inadequate." Because IBT has satisfied Rule 24(a)(2)'s four
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requirements, IBT is entitled to intervene as a matter of right. 2
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III.
CONCLUSION
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For the previous reasons, IBT' s Motion for Leave to Intervene, [Doc. 11,] is
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GRANTED. Because this Order grants IBT leave to intervene, its Motion for Leave to
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File Memorandum in Support of Defendants' Motion to Dismiss, [Doc. 18], is DENIED
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as moot. The Court will consider IBT's papers, [Doc. 18-2], in support of Defendants'
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Motion to Dismiss in ruling upon Defendants' motion, [Doc. 19]. Likewise, IBT' s Ex
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Parte Motion to Shorten Time for Motion for Leave and to Participate in Hearing, [Doc.
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19], is also DENIED as moot. As an intervenor, IBT may participate in the hearing.
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ERED.
f
Date: January
NITEZ
t Judge
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Because the Court finds IBT may intervene as of right, it need not determine
whether intervention is alternatively appropriate under Rule 24(b ).
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