Document: 421 U.S. 542 95 S.Ct. 1792 44 L.Ed.2d 363 Ernest FRY and Thelma Boehm, Petitioners,v.UNITED STATES. No. 73—822. Argued Nov. 11, 1974. Decided May 27, 1975. Syllabus The Economic Stabilization Act of 1970 authorized the President to stabilize wages salaries at certain levels, Pay Board was created oversee controls. Government filed this action enjoin Ohio its officials from paying state statutory wage salary increases employees above amount by Board. Temporary Emergency Court Appeals, on certification District Court, construed as applying employees, upheld constitutionality, enjoined payment increases. Held: 1. Act's language contemplating general stabilization 'prices, rents, wages, salaries, dividends, interest' providing that controls should 'call for generally comparable sacrifices business labor well other segments economy,' legislative history showing Congress had rejected an amendment exempting make it clear intended apply generally, including employees. That did not expressly refer States warrants no inference could extend their Pp. 545-546. 2. constitutional applied 547-548. (a) General raises even though purely intrastate in character, significantly affect interstate commerce, thus be validly regulated under Commerce Clause. P. 547. (b) are immune all federal regulation Clause merely because sovereign status. Maryland v. Wirtz, 392 183, 88 2017, 20 1020. Here, where appreciably intrude sovereignty but emergency measure counter severe inflation, effectiveness would have been drastically impaired if local governmental (who time freeze activated composed 14% Nation's work force) were left outside reach. (c) Since legislation conflicted with Board's ruling, State must yield Supremacy mandate. 548. United (Em.App., 1973), 487 F.2d 936, affirmed. John A. Brown, Columbus, Ohio, petitioners. Jewell S. Lafontant, Deputy Solicitor General, Washington, D.C., respondent. Mr. Justice MARSHALL delivered opinion Court. 1 19701 issue orders regulations levels less than those prevailing 25, 1970. By Executive Order, imposed authorization. Exec. Order 11627, 3 CFR 218 (1971 Comp.), note following 12 U.S.C. § 1904 (1970 ed., Supp. I). In implementing program, issued limited annual covered 5.5% required prior approval adjustments affecting 5,000 or more employees.2 subsequently enacted a 10.6% increase, effective January 1, 1972, almost 65,000 employees.3 increases, public hearing held. March denied application exemption extent exceeded 7% 1972 year.4 Petitioners, two sought writ mandamus court compel pay full provided act. Supreme granted ordered paid. ex rel. Fry Ferguson, 34 St.2d 252, 298 N.E.2d 129 (1973). 2 After decision, excess certified Appeals question applicability See 211(c) Act, constitutionality. 936 Relying decisions 1020 (1968), California, 297 175, 56 421, 80 L.Ed. 567 (1936), concluded interference affairs incident uniform implementation economic consequence since rational basis upon which conclude activity substantially affected commerce. accordingly We affirm. 4 * At outset, is contended intend include within reach therefore authority regulate compensation due employees.5 disagree. leave doubt throughout economy, employed governments. contemplated interest,' 202, I), economy.' 203(b)(5). It contained exceptions any bodies, level.6 failure express reference does warrant extended Case Bowles, 327 92, 99, 66 438, 442, 90 552 (1946); U.S., 186, 425. Indeed, framing specifically exempted 117 Cong.Rec. 43673 43677 (1971). And Senate Committee Report makes plain considered proposed same group. S.Rep. 92—507, p. (1971), U.S.Code Cong. & Admin.News 1971, 2283. clear, then, only remaining whether do so consistent limitations power. II 5 Petitioners acknowledge Congress' power very broad. Even character may Congress, activity, combined like conduct others similarly situated, affects commerce among foreign nations. Heart Atlanta Motel, Inc. States, 379 241, 255, 85 348, 356, 13 258 (1964); Wickard Filburn, 317 111, 127—128, 63 82, 90—91, 87 122 (1942). There little difficulty concluding such effect result large similar numbers States; e.g., inject millions dollars purchasing into economy might exert pressure force demand 6 appear challenge conclusion unrestrained wholly operations, significant Instead, they contend interferes functions reason read permit employees.7 7 On facts case, argument foreclosed our decision we held Fair Labor Standards constitutionally schools hospitals run State. Wirtz reiterated principle 196—197, 2023—2024. noted, moreover, statute quite application. case intrusive. inflation threatened national economy. H.R.Rep. 91—1330, pp. 9—11 (1970). method chose, Clause, give virtually prices, when activated, force. Brief 20. seems inescapable sizeable group these 8 Federal Public Utilities Comm'n California 355 534, 542—545, 78 446, 451—454, 470 (1958); Murphy O'Brien, 485 671, 675 (Temp.Emerg.Ct.App.1973). 9 Affirmed. 10 DOUGLAS. 11 Less three months after certiorari, allowed expire April 30, continuing impediment kind case. I dismiss improvidently granted. REHNQUIST, dissenting. Chief Chase his Texas White, Wall. 700, 725, 74 19 227 (1869), declared '(t)he Constitution, provisions, looks indestructible Union, States.' A over century later, there can Court's latest series casts some indeed 'indestructible.' 14 impose provisions entities, maximum number hours minimum received hospitals, institutions, schools. unreasonably relies holding across-the-board briefs arguments petitioners distinguish ground performing primarily 'proprietary' functions. countered discussed critical development doctrine today applies. operating railroad own boundaries. subject Safety Appliance Act. 15 Today's supra, plausible facts. wished check runaway means end control salaries. constitute portion whole, reasonably scheme excluded ambit one included them. And, course, precisely reasoning advanced support California. 16 Yet danger system emphasized cases taken together, separately, me manifest. Tenth Amendment, insists, meaning; how much meaning basic principles illumines. As stated Douglas, dissenting 205, 2028: 17 'If done, then National devour essentials sovereignty, attested Amendment.' 18 believe Constitution reached today, dissent. activities deemed 'controlling' 198, 2024. necessary begin analysis Stone's unanimous One shoulders heavy burden proof seeking demonstrate analytically flawed. treatment intergovernmental immunity satisfactory, sound decided 1936, beginning what called present era law process, later completed NLRB Jones Laughlin Steel Corp., 301 57 615, 81 893 (1937), Darby, 312 100, 61 451, 609 (1941), freeing both anachronistic doctrinally unsound constructions previously used deny affairs. understandable context inclined somewhat short shrift claim 'States' rights,' invoked itself against congressional rights' frequently past form ius tertii, enterprise avoid regulation, different tenor made impressed states: 'The states necessarily diminished grants government Constitution. fix rates appropriate commerce.' 184, 424. But familiar Shreveport Rate Cases (Houston E. W.T.R. Co. States) 234 342, 833, 58 1341 overriding answer Neither nor questions pre-empt regulatory areas bodies otherwise competent well-recognized traditionally associated persons enterprises, rather itself, difficult understand supports proposition without counterweight limit exercise them 21 went consider analogy instrumentalities taxation, 'not illuminating.' S.Ct., Apparently conceding relating tax applied, prevail, relevance, saying: 22 'But limitation plenary has individual.' Id., 185, (Emphasis added.) 23 italicized statement demonstrably wrong, recognized being wrong fact Amendment 'is significance.' Ante, 547 n. 7. explaining why useful explore further situation individual confronted regulation. Such who attacks asserts lack Under Cases, (1942), (1964), individual's ordinarily sustain. justified infringes rights under, say, First Fifth asserting affirmative defense own, delegated Congress. latter greater force, succeed former will fail, established. See, Leary 395 6, 89 1532, (1969); Jackson, 390 570, 1209, 138 (1968); Cardiff, 344 174, 73 189, 97 200 (1952); Tot 319 463, 1241, 1519 (1943). 24 simply absence authority, right, inherent capacity State, free congressionally asserted authority. Whether part prevail question, surely say 'state denial possess. 25 apparent State's tax, Butler, 312, 477 thought higher scale values imposition Especially true taxation explicit source appears rest solely concept federalism likewise precedent offered guide, think matter logic encumbrance nondiscriminatory comply Government. Where seeks revenue provide up difference chooses sources demands expenditure. collect such, require out moneys individuals particular rates, revenues also policy choices suffer. 26 Much referred gone way flesh, scope then-prevalent 'instrumentality' shortly modified. Graves New York O'Keefe, 306 466, 59 595, 83 927 (1939), today's income employees.1 Several years however, occasion discuss 326 572, 310, (1946). Court; Frankfurter, joined Rutledge, judgment stating taxing long exercised discriminatory manner. majority refused adopt formulation test. Stone, author spoke himself Justices Reed, Murphy, Burton 'we prepared lay non-discriminatory every class property alike.' 586, 316. Black, dissented outright, obtained selling mineral water sustained. Thus six Members constituted, reflected stop prohibiting discriminating between taxable entities 27 concurring opinion, Stone expressed follows: 28 '(A) nevertheless taxed, interfere unduly performance government. counterpart undue Marshall's day implied each dual sovereignties other. . 29 '. (I)t taxes which, laid impair status Mayo 441, 447, 448, 1137, 1140, 1141, 1504. This regarded taxpayer, non-discriminatory, infringing sovereignty.' 587, 30 Hans Louisiana, 134 504, 33 842 (1890), offers impressive Framers partaking many attributes apart Amendment. Chisholm Georgia, Dall. 419, 440 (1793), subsequent reaction gave rise enactment Eleventh told retold. Monaco Mississippi, 292 313, 323—325, 54 745, 748 749, 1282 (1934); Edelman Jordan, 415 651, 660 662, 94 1347, 1354—1355, 39 662 (1974). terms forbade courts entertain suits citizens another Louisiana involved suit literal Nevertheless canvassing understanding controversial Chisholm, unanimously lie, 31 'It enter examination expediency rule exempts prosecution justice individuals. fully writers law. enough us declare existence.' 21, 509. 32 Hans, prohibits sets mandatory ceiling Both Amendments examples drafted ratified respects, although superseded act, nonetheless deal just hold unlike traditional Applicance operation schools, facilities sufficiently closely allied paid beyond distinction undoubtedly gray marked case-by-case basis, principles. ceilings sustained respect clearly forbidden side line.2 war extraordinary interest alone. Cf. Yakus 321 414, 64 660, 834 (1944). empowered Fourteenth Fifteenth restrictions prerogatives. South Carolina Katzenbach, 383 301, 86 803, 769 (1966). alone sufficient sustain broad sweeping here derived 35 overruling obviously lightly undertaken. Taney, dissenting, Passenger How. 283, 470, 48 702 (1849); Brandeis, Burnet Coronado Oil Gas Co., 285 393, 405—411, 52 443, 446—449, 76 815 (1932); 590—591, 318, important command stare decisis questions. Surely fundamental intention allocated Governments. re-examination lead reversed. Title Aug. 15, 1970, Pub.L. 91—379, 84 Stat. 799, amended, five times before expired §§ 101.21, 201.10 101.28 (1972). Rev.Code Ann. 143.10(A) (Supp.1972). government, universities, county welfare departments. Elected included. determined increase November reduce rate year 14, 13, 1972. payments represent take effect, 16, total $10.5 million. raise either petition certiorari brief. Rather decide it, first addressed amici curiae reversal. categories members working poor, earning substandard entitled 203(d) (f), 203(c) (1)—(3), (f)(2), (3), (g). various agencies uniformly interpreted scope, see 36 Fed.Reg. 21790, 25428 (1971); 37 1240, 24961, 24989—24991 interpretation agency great weight. Udall Tallman, 380 16—18, 792, 801—802, 616 (1965). argument, power, While characterized 'truism,' 'all retained surrendered,' 124, 462, significance. declares fashion impairs States' integrity ability function effectively system. Despite extravagant claims score amici, convinced restriction constituted drastic invasion sovereignty. seem step requiring employee percentage hand, using direct money wages. rough similarities practical holdings employee, he performed therefor. upholds specified amounts Though measures respects similar, operates directly significance ours. Helvering Gerhardt, 304 405, 424, 969, 977, 82 1427 (1938), careful Port Authority, reserved, favor taxability. noted earlier dissent, contends impossible certainly rejecting distinction, conducted enunciating says concede line drawn somewhere. conceivable 'governmental' prove drawing. suggested (1946), undertaken activities, service, too unnecessary engage drawing, sweeps regardless tasks.

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