Union Pacific Loses Second Chance in Washington Payroll Suit

Union Pacific Railroad Co. can’t amend its complaint that challenges parts of a state payroll tax law and seeks relief from taxes because the Tax Injunction Act applies and prevents this federal court from considering the case, a Washington judge said.

The railroad company first challenged the entirety of the Washington Paid Family and Medical Leave Act, which imposes a state payroll tax to fund paid family and sick leave, by saying the law was precluded by a federal law that provided sick benefits to railroad workers. Union Pacific asked to amend its complaint with a new argument that said ...