UAW-Labor Employment & Training Corp. v. Chao

325 F.3d 360, 355 U.S. App. D.C. 460, 172 L.R.R.M. (BNA) 2287, 2003 U.S. App. LEXIS 7494, 2003 WL 1906339
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 22, 2003
Docket02-5080
StatusPublished
Cited by41 cases

This text of 325 F.3d 360 (UAW-Labor Employment & Training Corp. v. Chao) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UAW-Labor Employment & Training Corp. v. Chao, 325 F.3d 360, 355 U.S. App. D.C. 460, 172 L.R.R.M. (BNA) 2287, 2003 U.S. App. LEXIS 7494, 2003 WL 1906339 (D.C. Cir. 2003).

Opinions

Opinion for the Court filed by Senior Circuit Judge STEPHEN F. WILLIAMS.

Dissenting opinion filed by Circuit Judge ROGERS.

STEPHEN F. WILLIAMS, Senior Circuit Judge:

On February 17, 2001, relying on his power under the Procurement Act, President Bush issued Executive Order 13201, applying to all government contracts involving more than $100,000. Executive Order 13201, § 2, 66 Fed.Reg. 11,221, 11,-221, 2001 WL 169257 (2001); 41 U.S.C. § 403(11) (2000). Under the order, each such contract must include a provision requiring contractors to post notices at all of their facilities informing employees of what are commonly known as General Motors and Beck rights. See Executive Order 13201, § 2, 66 Fed.Reg. at 11,221-22, 2001 WL 169257 (2001). (In addition, contractors must require subcontractors to post such a notice. Id.) These are rights under federal labor law that protect employees from being forced to join a union or to pay mandatory dues for costs unrelated to representational activities. See Communications Workers v. Beck, 487 U.S. 735, 754-63, 108 S.Ct. 2641, 2653-58, 101 L.Ed.2d 634 (1988); see also NLRB v. Gen. Motors Corp., 373 U.S. 734, 739-45, 83 S.Ct. 1453, 1457-61, 10 L.Ed.2d 670 (1963). Besides informing employees of their Beck rights, the notice is to tell them how they may contact the National Labor Relations Board (“NLRB”) for additional information. 66 Fed.Reg. at 11,222, 2001 WL 169257.

Plaintiffs brought suit against the Secretary of Labor and the members of the Federal Acquisition Regulatory Council, seeking declaratory and injunctive relief. The plaintiffs are the UAW-Labor Employment and Training Corp. (“UAW”) and three unions. UAW is a non-profit organization that provides job training and placement services; it is a federal contractor subject to the executive order. Accordingly it clearly has standing, and we need not consider whether the other plaintiffs do. See Mountain States Legal Found. v. Glickman, 92 F.3d 1228, 1232 (D.C.Cir. 1996).

The plaintiffs claimed that the order was preempted by the National Labor Relations Act (“NLRA”), 29 U.S.C. § 151 et seq., and also that, for want of an adequate nexus to the government’s interest in efficient and economical contracting, the President had no authority to issue it under the Federal Property and Administrative Services Act of 1949 (the “Procurement Act”), 40 U.S.C. § 471 et seq. (now codified as amended at 40 U.S.C. § 101 et seq.). The district court found preemption, granted declaratory relief, and issued a permanent injunction barring enforcement of the order. It didn’t reach the Procurement Act question, but the plaintiffs raise it here as an alternative ground for affirmance. Finding both of plaintiffs’ theories to be flawed, we reverse and remand for the district court to grant summary judgment in favor of the government.

As the issues relate solely to summary judgment, we review de novo. See Indep. Bankers Ass’n v. Farm Credit Admin., 164 F.3d 661, 666 (D.C.Cir.1999).

Federal labor law preemption falls into two categories, Garmon and Machinists [363]*363preemption, named after the cases authoritatively articulating the theories—San Diego Bldg. Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775 (1959), and Lodge 76, Int’l Ass’n of Machinists & Aerospace Workers v. Wisconsin Employment Relations Comm’n, 427 U.S. 132, 96 S.Ct. 2548, 49 L.Ed.2d 396 (1976). Garmon preemption applies to regulation (usually by states) of activities that are arguably “protected by § 7 of the National Labor Relations Act, or constitute an unfair labor practice under § 8.” Garmon, 359 U.S. at 244, 79 S.Ct. at 779. Machinists preemption applies when a state attempts to regulate an activity that, although not necessarily protected or prohibited by the NLRA, is an “economic weapon” the exercise of which Congress intended to leave unrestricted. Machinists, 427 U.S. at 141, 96 S.Ct. at 2553-54. No claim is made that the posting of employees’ Beck rights represents an economic weapon—certainly not one covered by Machinists preemption. Rather the plaintiffs argue and the district court found that the executive order is preempted under Garmon.

We first consider the government’s suggestion that our preemption analysis should be less intrusive because the order only imposes a contract condition, and firms can choose to do business elsewhere. But at least in labor law, preemption applies to rules of the federal executive even when the government is acting as a purchaser of goods, as long as the government action is classified as regulatory rather than proprietary. See Chamber of Commerce v. Reich, 74 F.3d 1322, 1334, 1336-37 (D.C.Cir.1996); Bldg. & Constr. Trades Dep’t v. Allbaugh, 295 F.3d 28, 34 (D.C.Cir.2002). A clause is likely to be found regulatory where it apparently “seeks to set a broad policy.” Chamber of Commerce, 74 F.3d at 1337. Here, the government doesn’t explicitly argue that its actions are proprietary, but notes occasionally that it is only inserting conditions into a contract that businesses voluntarily accept. But as the order operates on government procurement across the board, •rather than being tailored to any particular setting, the order is regulatory under prevailing principles. See id. at 1336-37.

As we’ve said, Garmon preempts state (or here, federal executive) regulation of “activities [that] are protected by § 7 of the National Labor Relations Act, or constitute an unfair labor practice under § 8.” Garmon, 359 U.S. at 244, 79 S.Ct. at 779. The district court misconceived this doctrine. It said that under Garmon “[t]he question is not whether the NLRA prohibits employers from posting Beck/Ge^erai Motors notices ... but whether the NLRA prohibits requiring employers to post the notices.” District Court Opinion at 14. The NLRB had ruled in Rochester Manufacturing Co., 323 N.L.R.B. 260, 1997 WL 113885 (1997), that it was not an unfair labor practice for an employer to say nothing to employees about their Beck rights, id. at 262, and the district court read Rochester Manufacturing as meeting its (misformulated) test. But the question under Garmon is whether the “activities” are protected or prohibited. 359 U.S. at 244, 79 S.Ct. at 779; see also Wisconsin Dep’t of Indus. v. Gould Inc., 475 U.S. 282, 286, 106 S.Ct. 1057, 1061, 89 L.Ed.2d 223 (1986) (“States may not regulate

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325 F.3d 360, 355 U.S. App. D.C. 460, 172 L.R.R.M. (BNA) 2287, 2003 U.S. App. LEXIS 7494, 2003 WL 1906339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uaw-labor-employment-training-corp-v-chao-cadc-2003.