Document: 482 U.S. 1 107 S.Ct. 2211 96 L.Ed.2d FORT HALIFAX PACKING COMPANY, INC., Appellantv.P. Daniel COYNE, Director, Bureau of Labor Standards Maine, et al. No. 86-341. Argued March 24, 1987. Decided June 1, Syllabus After appellant closed its poultry packaging and processing plant laid off most the employees who worked there, Director Maine's filed suit to enforce provisions a state statute requiring employers, in event closing, provide one-time severance payment not covered by an express contract providing for pay. The State Superior Court granted summary judgment, holding liable under statute, Supreme affirmed, rejecting appellant's contentions that was pre-empted Employee Retirement Income Security Act 1974 (ERISA) National Relations (NLRA). Held: 1. Maine pay is ERISA, since it does "relate any employee benefit plan" statute's pre-emption provision, 29 U.S.C. § 1144(a). Appellant's contention law pertaining type listed such as pay, necessarily regulates plan, therefore pre-empted, fails light plain meaning underlying purpose 1144(a) overall objectives ERISA itself. Pp. 7-19. (a) Section refer laws relating simply "employee benefits," but expressly states are superseded insofar they plan " (emphasis added). In fact, uses words "benefit" "plan" separately throughout nowhere treats them equivalent. Given basic difference between two concepts, Congress' choice language significant only latter, which cannot be read out ERISA. order must have some connection with, or reference to, plan. 7-8. (b) Pre-emption would further pre-emption, allow plans adopt uniform scheme coordinating complex administrative activities, unaffected conflicting regulatory requirements differing States. neither establishes, nor requires employer maintain, embody set practices vulnerable burden imposed patchwork, multistate scheme. theoretical possibility one-time, lump-sum triggered single no whatsoever meet employer's statutory obligation. 8-15. (c) Similarly, implicate concerns itself, enacted ensure integrity operation preventing potential fiduciary abuse. establishes generates activity capable being abused. 15-16. (d) failure pre-empt will employers circumvent persuading States require types otherwise established on their own, has force with respect that, here, establish ERISA-covered program activity, presents risk applicable federal evaded dislodged State, creates prospect face difficulty operating unified Holland v. Burlington Industries, Inc., 772 F.2d 1140 (CA4 1985), summarily aff'd, 477 901, 106 3267, 91 559 (1986), Gilbert 765 320 (CA2 558 distinguished. 16-19. (e) Where, danger conflict there reason disable from attempting address uniquely local social economic problems. P. 19. 2. NLRA. argument establishment minimum labor standard impermissibly intrudes upon collective-bargaining process rejected Metropolitan Life Ins. Co. Massachusetts, 471 724, 105 2380, 85 728, without merit here. Although give something might had bargain, true substantively employment conditions. Moreover, this case distinguishable because obligation at issue here optional, applies absence agreement employees, persuasive, since, parties' freedom devise own arrangements strengthens works intrusion collective bargaining. Thus, valid unexceptional exercise State's police power, compatible 19-22. 510 A.2d 1054 (Me.1986), affirmed. BRENNAN, J., delivered opinion Court, MARSHALL, BLACKMUN, POWELL, STEVENS, JJ., joined. WHITE, dissenting opinion, REHNQUIST, C.J., O'CONNOR SCALIA, joined, post, p. 23. John C. Yavis, Jr., Hartford, Conn., appellant. Thomas D. Warren, Brunswick, Me., appellees. Justice BRENNAN Court. we decide whether Me.Rev.Stat. Ann., Tit. 26, 625-B (Supp.1986-1987),1 either 1974, 88 Stat. 832, amended, §§ 1001-1381 (ERISA), Act, 49 452, 157-158 upheld Civ. Action CV81-516 (Oct. 29, 1982), Judicial (1986). We noted probable jurisdiction, 479 947, 430, 93 380 now affirm. 2 * 1972, Fort Halifax Packing Company (Fort Company) purchased operated Winslow, almost decades. continued operate another decade, until, May 23, 1981, discontinued operations all except several maintenance clerical workers. At time over 100 were payroll. Forty-five 10 years, 19 20 years. Plaintiff's Supplementary Response List, Exhibit A (June 3, 1983). Following met officials representatives Local 385 Amalgamated Meat Cutters & Butcher Workmen North America, represented many plant. While initially suggested reopening feasible if union agreed certain concessions form amendments agreement, ultimately decided against resuming close 3 On October 30, 11 seeking pursuant Me.Rev.Stat.Ann., (Supp.1986-1987). This forth n. supra, provides terminates more relocates those than miles away, one week's each year least three liability accepts new location, deals 625-B(2), (3). Under authority also commenced action law, employees.2 4 ruling cross-motions Director's motion, statute. 1982). court Company's plant-closing created organizations. Id., 1059. It observed results rather employer-created Ibid. Therefore, reasoned court, "[i]nasmuch organization, said ERISA." provision NLRA regulated conduct 7 8 found equally nonunion reflects "the state's substantial interest protecting citizens dislocation accompanies large-scale closings." 1062. As result, eligible entitled due closure Winslow.3 5 hold offered welfare statute.4 NLRA, intrude process. affirm judgment II 6 pre-empted. Because benefits included see 1002(1)(B), argues pre-empts statute.5 effect, forecloses virtually legislation regarding benefits. fails, however, ERISA's first answer ": "[T]he subchapter . shall supersede may hereafter relate described 1003(a) title exempt 1003(b) title." held to" should construed expansively: "[a] 'relates to' normal sense phrase, plan." Shaw Delta Airlines, 463 85, 96-97, 103 2890, 2900, 77 490 (1983). Nothing our supports position word effect Indeed, itself speaks law's used treated equivalent another. "plan," latter. 9 matter, formidable obstacle argument. decision legislate becomes examination both section whole. B second pre-emption. analyzing "as analysis, 'the Congress ultimate touchstone.' 747, 2393, 728 (1985) (quoting Malone White Motor Corp., 435 497, 504, 98 1185, 1190, 55 443 (1978)). Attention particularly necessary terms defined tautologically "an pension 1002(3). Statements sponsors House Senate clearly disclose problem intended address. House, Representative Dent stated "with preemption field [of plans], round protection afforded participants eliminating threat inconsistent regulation." 120 Cong.Rec. 29197 (1974). Senator Williams declared: "It stressed narrow exceptions specified bill, substantive enforcement conference substitute preempt Federal regulations, thus regulation plans." 29933. 12 These statements reflect recognition realities plans. An makes commitment systematically undertakes host obligations, determining eligibility claimants, calculating levels, making disbursements, monitoring availability funds payments, keeping appropriate records comply reporting requirements. efficient way these responsibilities scheme, procedures guide claims disbursement Such system difficult achieve, subject required keep others; make available standards others. 13 hesitated where Alessi Raybestos-Manhattan, 451 101 1895, 68 402 (1981), instance, struck down New Jersey prohibited offsetting worker compensation payments Since practice permissible other States, structure accordance different formulae inside outside State. accommodate schemes devising paying precisely avoid. 14 point emphasized Shaw, regulation: "Obligating satisfy varied perhaps particular fair administration nationwide difficult." U.S., 105, 25, S.Ct., 2904, 25. situation produce considerable inefficiencies, choose offset lowering levels. indicated, "ERISA's comprehensive meant minimize sort interference plans," ibid., so "administer differently employees." 2904 (footnote omitted). 15 concern about programs reflected Shaw's disability administered fall within exemption maintained "for complying insurance laws." 1003(b)(3). To permit apply paid multibenefit provision: 16 "An find jurisdictional pattern depending what mandated disability, workmen's compensation, unemployment laws. impracticality permitting mutually exclusive pockets jurisdiction apparent." 107-108, 2905. 17 clear prompted establishing maintaining faced task activities. patchwork introduce inefficiencies operation, lead existing reduce benefits, refrain adopting them. ensures governed regulations. See, e.g., H.R.Rep. 93-533, (1973), U.S.Code Cong. Admin.News pp. 4639, 4650 ("[A] embodied considered desirable bring measure uniformity area decisions same facts differ state"). 18 purposes raises afford advantages arises, whose nature ongoing plans, Only embodies regulation. requirement assumes responsibility regular basis, faces periodic demands assets create need financial coordination control. Rather, predicated occurrence contingency never materialize. well extent do satisfaction duty involves closes. little write check hardly constitutes plan.6 Once over, responsibility. future underscored comparing consequences produced Standard Oil California Agsalud, 633 760 (CA9 1980), 454 801, 102 79, 70 75 Hawaii health care down, posed problems.7 First, already place did respects Act. If sought achieve efficiencies integrating into components separate administer directed Hawaii, lose Second, could demand coordinate dozens programs. Agsalud illustrates none existed before, same. Faced impossibility structuring according guidelines, all.8 21 By contrast, put either: (1) state-mandated (2) administer. case, respond passage setting up contingent obligation, deal obligations day go bankrupt. hindered ability retirement fashion, pays retirement, death, permanent total basis. App. 40. differs radically impact continuous 22 impediment adoption Neither future, act payment, prevent.9 serve enacted. C 23 third congressional declaration policy, codified 1001, "disclosure made safeguards provided establishment, [employee benefit] 1001(a). Dent, sponsor legislation, "will prevent abuses special borne dealing Williams, sponsor, safeguard "such self-dealing, imprudent investing, misappropriation funds." 29932. focus plans—which presumes taking place. 94-1785, 46 (1977) ("In electing deliberately preclude acted insure activities ") added); (1974) (remarks Rep. Dent) (disclosure enable Government monitor plans' id., 29935 Sen. Javits) information "covering detail fiscal plan") 24 foregoing why concerned regulating "plans" one. involve potentially activity. There occasion determine "operated" beneficiaries, nothing "operated." No transactions take annual report, needed clear. regulation, regulate. circumstances, D 25 Appellant contends opportunity own. That rationale rely today. 26 rested premise pre-existing employer, agree approach readily means evading scope, thereby depriving protections addition, allowing directly forbidden analysis mere fact insufficient fend pose barrier development practices. illustrates, requirements, numerous impose distinct requirements—a result squarely goal 27 arguments taken addressed reasoning below. demonstrated, normally Enforcement evade dislodge Nor dangers upholding law. 28 supported disagree. Those cases general completely consistent above. question cases, "plan";10 among precise assets, trust fund, regarded 1002.11 courts' conclusion took account central integrity: able merely assets. Some necessitate others not. not, "relate[s] "plan." 1144(a).12 support E 30 "must guided spheres governmental preserved federalist system." 522, 1905. refuted warrant disabling problems.13 conflict, III 31 arguing, relies strand prohibits "imposing additional restrictions weapons self-help." Golden Transit Corp. City Los Angeles, 475 608, 614, 1395, 1399, 89 616 (1986).14 Restriction rests theory intent involved unregulated [it be] left 'to controlled free play forces.' Machinists Wisconsin Employment Comm'n, 427 132, 140, 2548, 2553, 396 (1976) NLRB Nash-Finch Co., 404 138, 144, 92 373, 377, 328 (1971)). 32 concedes unlike been doctrine, parties. Machinists, supra (State enjoined members continuing refuse work overtime); Garner Teamsters, 346 485, 74 161, L.Ed. 228 (1953) picketing). party forgo use weapons. Transit, (City Council conditioned taxicab franchise renewal settlement strike). Nonetheless, maintains bargaining parties undercuts withstand union's 33 argument—that bargaining—was (1985). mental policies. Appellants presented case: "[B]ecause leave agreements forces, mandated-benefit NLRA." 748, 2394. held, ensuring equitable process, emerge "The evil addressing entirely unrelated employment." 754, 2397. individual workers alike, "neither encourage[s] discourage[s] processes 755, Furthermore, lightly inferred area, falls traditional power Court: "When minimal legislative goals conflicts Act." 757, 2398. gives bargain. true, regard Both come table rights 'backdrop' negotiations. Taggart Weinacker's, 397 223, 228, 90 876, 878, 240 (1970) (concurring opinion)). Absent common generally permits run work-place wishes. enjoys having bargain it. enter negotiations designed alter affairs, but, impasse reached, justify decisions; defines duties employees. negotiate intention terms. determines right level pertains matters claim "there issues bargaining." 504-505, (1978). 34 Life. points Life, argues, genuine standard. arrangements, balance desirability self-determination conditions employment. escapes surely pre-empted.15 35 "a [State's] power." 758, 2398-2399. "Congress developed framework self-organization larger body promoting public safety," 756, 2398, NLRA.16 IV 36 37 Affirmed. 38 whom THE CHIEF JUSTICE, O'CONNOR, SCALIA join, dissenting. 39 rejects challenge "administrative scheme" turn existence scheme," loophole 1144, undermine employee-benefit matter Court's rule prerequisite effectively dictate wide array characterizing non-"administrative." chosen ignore precedent exists I dissent incredible believe broad contained depend exercised foresight preparing eventual 40 "any ." 1144. heretofore organization" including 1002(1). See 320, 325 "which specific 'relate[s] plans" contemplated provision. Air Lines, 97, thought end inquiry. Here, plainly "relates acknowledged much, legislature instead private employer. Apparently recognizing flaw inherent reasoning, majority nevertheless struggles desired asserting accept conclusion. 41 1002(1) formalities policy manual handbook effectuate Cf. ante, 14—15, 9. reading 1002(1), ignores obvious: when called discharge legislatively materialize thin air. Legislature presumed, entitled, dictates happen less And unaware business affairs exist—and behavior class seemingly concluding scheme"—in remarkable constitute 42 overrules, sub silentio, recent involuntarily terminated. fund and, note, program: granting denial automatic termination. Plaintiffs [employees] allege respecting policy. is, that: published statement, description statement modifications; designate inform plan; procedure; apart company's 'open door' grievance appeals procedure." Gilbert, F.2d, 323. amici claimed promise more, 324. Second Circuit contention, 325, 43 characterizes 760, 766 Hawaii's impaired employers' "structur[e] [their] guidelines." Ante, 13. But uniformity. Ninth statutes benefits: "Appellants district argued primarily like principally administration. distinction opposed administration." 765. "directly 'relate 766. Representatives appealed 80-1841, claiming, inter alia, "in all." Juris.Statement, O.T.1981, 7. disagreed (1981). 44 "administrative-scheme" circumventing intent, expressed For reason, dissent. pertinent part: "2. Severance Any his rate establishment. addition final wage period after employee's last full work, notwithstanding "3. Mitigation liability. if: "A. Relocation termination necessitated physical calamity; "B. pay; "C. location; "D. employed years." 625-B(1)(A) "covered establishment" facility employs persons, while 625-B(1)(F) "relocation" removal substantially away original location. 625-B(5) relevant "5. Suits director. director authorized supervise unpaid owing section. competent recover amount subsection behalf employee, become plaintiff action, terminate filing complaint subsection, unless dismissed prejudice Ninety-three ranging $490 $11,500. $256,600. Affidavit Xavier J. Dietrich, (Aug. 13, 1984). alternative even virtue "maintained solely 1002(1)(B) pays, 186(c). latter includes, money include fund. (1986); Scott Gulf 754 1499 1985); CFR 2510.3-1(a)(3) discussion, infra, ----. Martori Bros. Distributors James-Massengale, 781 1349, 1358 (CA9) ("It how lump sum plan"), amended grounds, 791 799, cert. denied, 949, 435, Donovan Dillingham, 688 1367, 1373 (CA11 1982) ("A extend program"). 1983, before enactment Haw.Rev.Stat. 393-1 through 393-48 (1976 Supp.1984). 1144(b)(5). amendment portions reporting, disclosure, draws court's rejection administration, Post, position, acknowledges supra: a[n] attempt levels—precisely prevent. notes death sometimes nonetheless contends, mean argument, misunderstands represent perspective foresees survivors ongoing, predictable received beneficiaries instructions determined, levels calculated, disbursements made. 54-56. prompt program, paid. person company distributed Policy Manual Employees' Handbook details eligibility, schedules. 1143-1144, 1; complied ----, existence. arose includes lists, regularity simple expedient somehow formally contingency. "by non-'administrative.' During decade 1971 plants resulting direct loss 21,215 jobs. Leighton, Plant Closings Maine: Law Reality, Key Issues, 27, Closing Legislation (A. Aboud ed., Taking multiplier effects job losses communities, estimated number jobs lost during 49,219. 3. concentrated poorer counties lower industries, service agencies. 4. contains Nonunion unilaterally escape unionized engage result. ease flows freer San Diego Building Trades Garmon, 359 236, 79 773, 775 (1959), purport regulate Board. 748-749, 2393-2394.

Category: 9