Chamber of Commerce of United States v. Brown

21 Fla. L. Weekly Fed. S 405, 128 S. Ct. 2408, 171 L. Ed. 2d 264, 554 U.S. 60, 2008 U.S. LEXIS 5033, 76 U.S.L.W. 4482, 184 L.R.R.M. (BNA) 2385
CourtSupreme Court of the United States
DecidedJune 19, 2008
Docket06-939
StatusPublished
Cited by126 cases

This text of 21 Fla. L. Weekly Fed. S 405 (Chamber of Commerce of United States v. Brown) 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
Chamber of Commerce of United States v. Brown, 21 Fla. L. Weekly Fed. S 405, 128 S. Ct. 2408, 171 L. Ed. 2d 264, 554 U.S. 60, 2008 U.S. LEXIS 5033, 76 U.S.L.W. 4482, 184 L.R.R.M. (BNA) 2385 (U.S. 2008).

Opinions

Justice Stevens

delivered the opinion of the Court.

A California statute known as “Assembly Bill 1889” (AB 1889) prohibits several classes of employers that receive state funds from using the funds “to assist, promote, or deter union organizing.” See Cal. Govt. Code Ann. §§ 16645-16649 (West Supp. 2008). The question presented to us is whether two of its provisions—§ 16645.2, applicable to grant recipients, and § 16645.7, applicable to private employers receiving more than $10,000 in program funds in any year— are pre-empted by federal law mandating that certain zones of labor activity be unregulated.

I

As set forth in the preamble, the State of California enacted AB 1889 for the following purpose:

[63]*63“It is the policy of the state not to interfere with an employee’s choice about whether to join or to be represented by a labor union. For this reason, the state should not subsidize efforts by an employer to assist, promote, or deter union organizing. It is the intent of the Legislature in enacting this act to prohibit an employer from using state funds and facilities for the purpose of influencing employees to support or oppose unionization and to prohibit an employer from seeking to influence employees to support or oppose unionization while those employees are performing work on a state contract.” 2000 Cal. Stats, ch. 872, § 1.

AB 1889 prohibits certain employers that receive state funds — whether by reimbursement, grant, contract, use of state property, or pursuant to a state program — from using such funds to “assist, promote, or deter union organizing.” See Cal. Govt. Code Ann. §§ 16645.1 to 16645.7. This prohibition encompasses “any attempt by an employer to influence the decision of its employees” regarding “[w]hether to support or oppose a labor organization” and “[w]hether to become a member of any labor organization.” § 16645(a). The statute specifies that the spending restriction applies to “any expense, including legal and consulting fees and salaries of supervisors and employees, incurred for . . . an activity to assist, promote, or deter union organizing.” § 16646(a).

Despite the neutral statement of policy quoted above, AB 1889 expressly exempts “activities] performed” or “expense[s] incurred” in connection with certain undertakings that promote unionization, including “[a]llowing a labor organization or its representatives access to the employer’s facilities or property,” and “Negotiating, entering into, or carrying out a voluntary recognition agreement with a labor organization.” §§ 16647(b), (d).

To ensure compliance with the grant and program restrictions at issue in this case, AB 1889 establishes a formidable enforcement scheme. Covered employers must certify that no state funds will be used for prohibited expenditures; the [64]*64employer must also maintain and provide upon request “records sufficient to show that no state funds were used for those expenditures.” §§ 16645.2(c), 16645.7(b)-(c). If an employer commingles state and other funds, the statute presumes that any expenditures to assist, promote, or deter union organizing derive in part from state funds on a pro rata basis. § 16646(b). Violators are liable to the State for the amount of funds used for prohibited purposes plus a civil penalty equal to twice the amount of those funds. §§ 16645.2(d), 16645.7(d). Suspected violators may be sued by the state attorney general or any private taxpayer, and prevailing plaintiffs are “entitled to recover reasonable attorney’s fees and costs.” § 16645.8(d).

II

In April 2002, several organizations whose members do business with the State of California (collectively, Chamber of Commerce) brought this action against the California Department of Health Services and appropriate state officials (collectively, the State) to enjoin enforcement of AB 1889. Two labor unions (collectively, AFL-CIO) intervened to defend the statute’s validity.

The District Court granted partial summary judgment in favor of the Chamber of Commerce,1 holding that the National Labor Relations Act (NLEA or Wagner Act), 49 Stat. 449, as amended, 29 U. S. C. § 151 et seq., pre-empts Cal. Govt. Code Ann. § 16645.2 (concerning grants) and § 16645.7 (concerning program funds) because those provisions “regulat[e] employer speech about union organizing under specified circumstances, even though Congress intended free debate.” Chamber of Commerce v. Lockyer, 225 F. Supp. 2d 1199, 1205 (CD Cal. 2002). The Court of Appeals for the Ninth Circuit, [65]*65after twice affirming the District Court’s judgment, granted rehearing en banc and reversed. See Chamber of Commerce v. Lockyer, 463 F. 3d 1076, 1082 (2006). While the en banc majority agreed that California enacted §§ 16645.2 and 16645.7 in its capacity as a regulator, and not as a mere proprietor or market participant, see id., at 1082-1085, it concluded that Congress did not intend to preclude States from imposing such restrictions on the use of their own funds, see id., at 1085-1096. We granted certiorari, 552 U. S. 1035 (2007), and now reverse.

Although the NLRA itself contains no express preemption provision, we have held that Congress implicitly mandated two types of pre-emption as necessary to implement federal labor policy. The first, known as Garmon preemption, see San Diego Building Trades Council v. Garmon, 359 U. S. 236 (1959), “is intended to preclude state interference with the National Labor Relations Board's interpretation and active enforcement of the ‘integrated scheme of regulation’ established by the NLRA.” Golden State Transit Corp. v. Los Angeles, 475 U. S. 608, 613 (1986) (Golden State I). To this end, Garmon pre-emption forbids States to “regulate activity that the NLRA protects, prohibits, or arguably protects or prohibits.” Wisconsin Dept. of Industry v. Gould Inc., 475 U. S. 282, 286 (1986). The second, known as Machinists pre-emption, forbids both the National Labor Relations Board (NLRB) and States to regulate conduct that Congress intended “be unregulated because left ‘to be controlled by the free play of economic forces.’ ” Machinists v. Wisconsin Employment Relations Comm’n, 427 U. S. 132, 140 (1976) (quoting NLRB v. Nash-Finch Co., 404 U. S. 138, 144 (1971)). Machinists pre-emption is based on the premise that “ ‘Congress struck a balance of protection, prohibition, and laissez-faire in respect to union organization, collective bargaining, and labor disputes.’” 427 U. S., at 140, n. 4 (quoting Cox, Labor Law Preemption Revisited, 85 Harv. L. Rev. 1337, 1352 (1972)).

[66]*66Today we hold that §§ 16645.2 and 16645.7 are pre-empted under Machinists

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21 Fla. L. Weekly Fed. S 405, 128 S. Ct. 2408, 171 L. Ed. 2d 264, 554 U.S. 60, 2008 U.S. LEXIS 5033, 76 U.S.L.W. 4482, 184 L.R.R.M. (BNA) 2385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamber-of-commerce-of-united-states-v-brown-scotus-2008.