California Division of Labor Standards Enforcement v. Dillingham Construction, N. A.

519 U.S. 316, 117 S. Ct. 832, 136 L. Ed. 2d 791, 1997 U.S. LEXIS 691
CourtSupreme Court of the United States
DecidedFebruary 18, 1997
Docket95-789
StatusPublished
Cited by743 cases

This text of 519 U.S. 316 (California Division of Labor Standards Enforcement v. Dillingham Construction, N. A.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Division of Labor Standards Enforcement v. Dillingham Construction, N. A., 519 U.S. 316, 117 S. Ct. 832, 136 L. Ed. 2d 791, 1997 U.S. LEXIS 691 (1997).

Opinions

[319]*319Justice Thomas

delivered the opinion of the Court.

The State of California requires a contractor on a public works project to pay its workers the prevailing wage in the project’s locale. An exception to this requirement permits a contractor to pay a lower wage to workers participating in an approved apprenticeship program. This case presents the question whether the pre-emption provision of the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 829, as amended, 29 U. S. C. § 1001 et seq., supersedes California’s prevailing wage law to the extent that the law prohibits payment of an apprentice wage to an apprentice trained in an unapproved program. We conclude that California’s law does not “relate to” employee benefit plans, and thus is not pre-empted.

I

A

Since 1931, the Davis-Bacon Act, 46 Stat. 1494, as amended, 40 U. S. C. §§ 276a to 276a-5, has required that the wages paid on federal public works projects equal wages paid in the project’s locale on similar, private construction jobs. California, in 1937, adopted a similar statute, which requires contractors who are awarded public works projects to pay their workers “not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed.” Cal. Lab. Code Ann. § 1771 (West 1989). Under both the Davis-Bacon Act and California’s prevailing wage law, public works contractors may pay less than the prevailing journeyman wage to apprentices in apprenticeship programs that meet standards promulgated under the National Apprenticeship Act, 50 Stat. [320]*320664, as amended, 29 U. S. C. §50 (known popularly as the Fitzgerald Act).1 See 29 CFR § 29.5(b)(5) (1996); Cal. Lab. Code Ann. §1777.5 (West 1989 and Supp. 1997). In most circumstances, California public works contractors are not obliged to employ apprentices, but if they do, the apprentice wage is only permitted for those apprentices in approved programs. is

programs. The federal arbiter of apprenticeship program adequacy is the Bureau of Apprenticeship and Training (BAT), located within the Department of Labor. An apprenticeship program that seeks to provide federal public works contractors with apprentice-wage-eligible apprentices must receive the blessing of either the BAT or a “State Apprenticeship Agency.” 29 CFR §29.3 (1996). Since 1978, California’s state apprenticeship agency, the California Apprenticeship Council (CAC), has been authorized under 29 CFR §29.12 to approve apprenticeship programs for federal purposes. App. 37. California has also charged the CAC with approving apprenticeship programs for purposes of California’s prevailing wage statute. See Cal. Lab. Code Ann. § 3071 (West 1989). Pursuant to the Fitzgerald Act, the United States Secretary of Labor has promulgated apprenticeship program standards. 29 CFR §29.5 (1996). California has adopted its own apprenticeship standards, 8 Cal. Code Regs. §212 (1996), that are “substantively similar” to the federal standards. Southern Cal. Chapter of Associated Builders and Contractors, Inc., Joint Apprenticeship Committee v. California Apprenticeship Council, 4 Cal. 4th 422, 434, 841 P. 2d [321]*3211011, 1017 (1992) (Southern Cal. ABC). The CAC uses its own standards whether approving an apprenticeship program for federal or for state purposes.

An apprenticeship program in California may be sponsored by an individual employer, an individual labor union, a group of employers, a group of labor organizations, or by a joint management-labor venture (a so-called joint apprenticeship committee). See Cal. Lab. Code Ann. §3075 (West 1989).

B

In the spring of 1987, respondent Dillingham Construction was awarded a public works contract as the general contractor for the construction of the Sonoma County Main Adult Detention Facility. Dillingham subcontracted electronic installation work to respondent Manuel J. Arceo, doing business as Sound Systems Media.

When Sound Systems Media was awarded the subcontract, it was signatory to a collective-bargaining agreement that provided a wage scale for apprentices, and required Sound Systems Media to contribute to a CAC-approved apprenticeship program, the Northern California Sound and Communications Joint Apprenticeship Training Committee.

In May 1988, after work on the project was underway, the existing union withdrew its representation of Sound Systems Media employees. Two months later, Sound Systems Media entered a new collective-bargaining agreement with a different union. That agreement, like the earlier one, included a scale of wages for apprentices and provided for an affiliation with a joint apprenticeship committee, the Electronic and Communications Systems Joint Apprenticeship Training Committee (Electronic and Communications Systems JATC). Sound Systems Media relied on this new committee for its apprentices, to whom it paid the apprentice wage provided in the collective-bargaining agreement. The Electronic and Communications Systems JATC, however, did not seek CAC [322]*322approval until August 1989 and did not gain approval until October 1990. That approval was not retroactive.

In March 1989, yet another union filed a complaint against Sound Systems Media with petitioner Division of Apprenticeship Standards of the California Department of Industrial Relations. Petitioner issued a notice of noncompliance to both Dillingham Construction and Sound Systems Media, charging that Sound Systems Media had violated Cal. Lab. Code Ann. § 1771 (West 1989) by paying the apprentice wage, rather than the prevailing journeyman wage, to apprentices from a nonapproved program. The County of Sonoma was ordered to withhold certain moneys from Dillingham Construction for the violation.

Respondents filed suit to prevent petitioners from interfering with payment under the subcontract. Their complaint alleged, inter alia, that ERISA pre-empted enforcement of the prevailing wage law. Respondents argued that the Electronic and Communications Systems JATC was an “employee welfare benefit plan” within the meaning of ERISA §3(1), 29 U.S.C. §1002(1),2 and that California’s prevailing wage statute “relate[d] to” it, and was therefore superseded by ERISA’s pre-emption provision, § 514(a), 29 U. S. C. § 1144(a).3 The District Court agreed that the prevailing wage statute “relate[d] to” ERISA plans, but con-[323]*323eluded that pre-emption was forestalled by ERISA’s saving clause, § 514(d), 29 U. S. C.

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519 U.S. 316, 117 S. Ct. 832, 136 L. Ed. 2d 791, 1997 U.S. LEXIS 691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-division-of-labor-standards-enforcement-v-dillingham-scotus-1997.