Document: 431 U.S. 471 97 S.Ct. 1898 52 L.Ed.2d 513 OHIO BUREAU OF EMPLOYMENT SERVICES et al., Appellants,v.Leonard Paul HODORY. No. 75-1707. Argued Feb. 28, 1977. Decided May 31, Syllabus Appellee, an employee of United States Steel Corporation (USS) at a plant in Ohio, was furloughed when the shut down because reduction fuel supply resulting from nationwide strike workers USS's coal mines. Appellee applied to appellant Ohio Bureau Employment Services for unemployment benefits but his claim disallowed under statute that disqualified worker such if "due labor dispute other than lockout any factory . owned or operated by employer which he is last employed." While appellee's request reconsideration pending before Board Review, filed class action Federal District Court against appellants, and its director, declaratory injunctive relief, asserting conflicted with certain provisions Social Security Act (SSA) that, as applied, it irrational had no valid public purpose, violation Due Process Equal Protection Clauses fourteenth Amendment. Concluding abstention not proper, held statute, appellee members, violated those Clauses. Held : 1. Abstention required either Younger v. Harris, 401 37, 91 746, 27 669, Railroad Comm'n Pullman Co., 312 496, 61 643, 85 L.Ed. 971. Pp. 477-481. (a) Where has concluded submit constitutional issue this immediate resolution, principles equity comity do require refuse adjudication seeks. 477-480. (b) Nor appropriate, where possible have become too speculative justify avoidance question. 480-481. 2. The neither conflict with, nor pre-empted 42 U.S.C. § 503(a) (the provision SSA precludes Secretary Labor certifying payment federal funds state compensation programs unless law provides methods administration finds are "reasonably calculated insure full due"), Unemployment Tax (FUTA). 489-493. 3. rational relation legitimate interest, constitutional. does involve discernible fundamental interest affect particularity protected class, test constitutionality, therefore, whether interest. P. 489. In considering constitutionality must view consequences, only recipient benefits, also contributors fund, and, although system may provide "rough justice" rough form "neutrality" disputes, cannot be said irrational, need limitation liability fund 408 F.Supp. 1016, reversed. Richard A. Szilagyi, Columbus, appellants. Thomas Patrick Lordeon, Youngstown, appellee. Mr. Justice BLACKMUN delivered opinion Court. 1 This case presents challenge Rev.Code Ann. 4141.29(D)(1)(a) (1973). That times relevant suit, imposed disqualification claimant's based on Supremacy Clause Fourteenth raises questions concerning abstention. 2 * November 1974 plaintiff-appellee, Leonard Hodory, employed millwright apprentice works Ohio. Mine Workers time were out mines USS Republic throughout country. These company-owned supplied used operation manufacturing facilities Republic. As result strike, Youngstown reduced. eventually 12, 1974. 3 Hodory benefits. On January 3, 1975, notified then provided receive 4 "(h)is due factory, establishment, premises located employed; so long dispute."1 5 written notification recited: "A started U. S. claimant unemployed dispute." App. i. Other notifications subsequent weeks contained similar recitals. Id., ii iii. promptly reconsideration. accord 4141.28(G) (1973), request, along number others, referred March 7 Review.2 6 Meanwhile, 27, complaint Northern Albert G. Giles. 1983 sought relief behalf "all others similarly situated" who been future would denied 4141.29(D)(1)(a). Record, Doc. pp. asserted, among things, §§ 303(a)(1) (3) 1935, amended, 503(a)(1) (3), Amendment.3 gravamen Hodory's assertion State deny like him, circumstances "not fault employee." A three-judge court requested. Appellants their answer failed exhaust administrative remedies. 8 convened. tried pleadings interrogatories. 5, 1976, proper; properly maintained action;4 appellants demonstrate discriminating "individuals through own participated benefited involving another union employer." 1022. 4141.29(D)(1)(a), 9 director took direct appeal here pursuant 28 1253. jurisdictional statement argued (1) "labor dispute" unconstitutional class; (2) Act; predicate upon reasonable basis; (4) Republic, employers substantive procedural process failure order them joined parties defendant.5 made therein We noted probable jurisdiction. 429 814, 53, 50 73 (1976). 10 should abstained deciding raised, however, brief amicus curiae AFL-CIO. least suggesteds Steel. Brief Amicus Curiae 16-17. feel claims merit consideration. 11 follow proper course courts first required, there statutory ground finally, persists, violates Constitution. II 12 There are, course, two primary types first, usually abstention, involves inquiry focused possibility interpret challenged eliminate alter materially, question presented. 971 (1941). See Bellotti Baird, 428 132, 96 2857, 49 844 second type primarily concerned, equitable setting, considerations federalism, both they relate State's pursuing ongoing proceeding, ability consider context. 669 (1971). Huffman Pursue, Ltd., 420 592, 95 1200, 43 482 (1975); Judice Vail, 430 327, 1211, 51 376 (1977); Trainor Hernandez, 434, 448, 1911, 1920, 486 (concurring opinion). 13 present case, effect free pursue adjudicated Common Pleas, therefore abstention.6 Although submission cited Pullman, argument clearly apply.7 14 unwarranted. It asserted Gibson Berryhill, 411 564, 93 1689, 36 488 "stated specifically remedies exhausted plaintiff states good cause 1983." F.Supp., 1019.8 stated "on face, appear except period laid off miners' strike," "the solely basis disqualification." 1019. exhaustion futile permit 1019, n. observed supra, broadened doctrine "to include prohibition interference civil proceedings courts." 1019-1020, "was limited enjoining state-initiated judicial proceedings," 1020 (emphasis original), did apply actions. Finally, line, "would case" ambiguous one "involving unsettled could rendered constitutionally inoffensive limiting construction 1020. improper undertake three appeals"9 "where, moreover, apparently settled." Ibid. 15 Court, noted, requires remand directions abstain, oral resisted suggestion remand. Tr. Oral Arg. 9-10. Instead, suggestion. 16 Harris reflects "a sensitivity interests National Governments, Government, anxious though vindicate protect rights interests, always endeavors ways will unduly interfere activities States." U.S., 44, S.Ct., 750. 604, 1208; 334, 1216-1217; 441-443, 445-446, 1916-1917, 1919-1920, id., 1920 these cases express federalism. They designed allow opportunity "set house order" already tribunal. 17 argued, compelled abstain every situation. If voluntarily chooses forum, demand force back into system. believes correct analysis or, faced prospect lengthy appeals followed equally protracted proceedings, now resolution. event, seeks.10 18 B. AFL-CIO argues here.11 claimed applicability found facts steelworkers, facilities, same assertedly reason, yet awarded Bureau. Benefits granted sufficient amount plants involved shutdown.12 appeal, might ground. 19 problems approach, several. First, press 9, indication Review. Second, worked situated granted. closing to" received less 50% employer's struck 7-8. showing unreasonable dependent more coal. What suggests speculation unchallenged obviously saw them, overturn standard causation, even come up hitherto unknown unclaimed reason awarding appellee, theory " 'at employers' mines.' 8. 20 None suggestions fact solid legal precedent. comes play appears materially point, point reached surpassed here. conclude appropriate. III Pre-emption 21 by, Act, 501 seq., 26 3301-3311. raised resolved there. preferable, dealt first. Hagans Lavine, 415 528, 543-545, 94 1372, 1382-1383, 39 577 (1974). issue, entails findings fully briefed parties. perceive we proceed decide 22 points statutes source requirement paid compensation. 503(a)(1), shall make certification "as reasonably due." Appellee's necessarily "due" him. 23 cites single page voluminous legislative history support forbids persons related plant. contains sentence: "To serve purposes, involuntarily unemployed." Report Committee Economic Security, reprinted Hearings 1130 Senate Finance, 74th Cong., 1st Sess., 1311, 1328 (1935). 24 President became cornerstone Act. quoted sentence give some "involuntariness" intended key eligibility. reading entire consideration context, show Congress intend coverage person unemployed. 25 recognized definition scope probably prove easier administer individualized plans, 1323, nonetheless recommended scheme exists today, namely, involvement tax incentives encourage state-run programs. Report's section entitled "Outline Act" concludes statement: "The plan suggest contemplates broad freedom set wish. believe all matters uniformity absolutely essential left States. assist setting administrations solution encounter." 1326. 1314. Following statement, "suggestions Legislation." reads: 29 "Benefits. determining waiting periods, benefit rates, maximum-benefit etc. caution lest insert excess collections laws. To arouse hopes fulfilled invariably bad social governmental policy." 1327. 30 things. understanding schemes generally grant immediately indefinitely, expected create bring line receipts. concern eligibility greater handle. 31 By way advice particular statutes, "Suggestions" following: 32 "Willingness-to-work test. employees compensated able willing work accept suitable employment. Workers, positions wage, hour, working conditions below usual occupation region, outside State, self-organization collective bargaining interfered with." 1328. 33 This, origin compensated. Placed clear expression dispensed freely, direction dispensed. 34 accordingly fails. Indeed, shows, rather, restrict legislate respect position. H.R.Rep.No.615, 8-9 (1935); S.Rep.No.628, 12-13 35 find disqualification" 5(d) draft bills issued shortly after passage Board, Draft Bills Compensation Pooled Fund Employer Reserve Account Types (1936).13 proposed evinced intention "innocent" cover booklet explicitly stated: "These drafts merely suggestive Therefore, termed 'model' bills. keeping policy recognizing final responsibility right each determine itself just what legislation desires how drafted." 37 most reluctant read implications 38 More important, fails face. themselves "innocents" various minimum spent job, maximum itself. triggered "establishment" disqualify member "grade workers" whose members interested dispute. commentary jurisdictions adopted versions recognized, division actively opposed extend employer.14 challenges different bills, say qualitatively different. significant 40 Court's decision California Human Resources Dept. Java, 402 121, 1347, 666 payments "when due" suspension during merits. relies objective substitute wages lost 130, 1353. holding agree. Nothing Java purported define eligible sole treatment determined eligible. 41 statements Amendments 1970, 84 Stat. 695, indicate congressional position disqualified. (identical House Reports) amendment prohibiting canceling accumulated wage credits grounds employee's change jobs.15 concerned situation unrelated himself. extent seen shedding light area, far persuasive authority favor, since recognize continue "in worker's plant, etc." alternative addition urges 3301-3311, shows "congressional intent pre-empt state, particularly inclusiveness program." 13. understand argue imposing sort disqualification. total pre-emption claimed, nothing citations area study wished impose forbid condition compensation, explicit terms.16 numerous examples, forth 16, disputes deal specific aspects plans.17 chosen subject disqualifications confirms our belief States' area. IV Constitutionality come, then, class. concedes 29. New Orleans Dukes, 427 297, 2513, 511 Our Term Massachusetts Bd. Retirement Murgia, 307, 2562, 520 (1976), explains analysis: "We turn examine classification rational-basis standard. employs relatively relaxed reflecting awareness drawing lines distinctions peculiarly task unavoidable one. Perfection making necessary classifications necessary. Dandridge Williams, (397 471,) 485, 90 (1153), 1162 (25 491 (1970)). Such legislature presumed valid." 314, 2567. 44 application difficult, discern precise nature His discussion focuses great "involuntarily unemployed," arguing disqualified, approves bills' provision. 53. provision, discussed above, nonunion grade nevertheless went strike. 45 irrationality based, statute's sweep, disqualifies individual "regardless geographical remoteness location dispute, regardless arguable actual, imputable, participation part person."18 34. thus 46 touches recipient. creation produced contributions private employers. rate contribution varies according employees. 4141.25 Any regard disbursements fiscal integrity fund. needs seeking weight given effects decision, contrary principle Amendment gives power views constitutes wise economic 397 471, 486, 1153, 1162, (1970). 47 Looking face acceptable rationale appears. lockout." words, goes increased, locks out, put increased. justice," irrational. "If 'reasonable basis,' offend Constitution simply 'is mathematical nicety practice results inequality.' Lindsley Natural Carbonic Gas 220 61, 78, 337, 55 369." 1161. rationality is, independent "innocence" collecting 48 assert additional rationales granting parent company's subsidiary subsidizing members. 12. correctly rejected rationale, directly subsidize striking miners, happened (other union) standing alone, him continued: "Moreover, close scrutiny reasons reveals actually intending prevent 'subsidizing' per se, union-initiated stoppages" original). purpose proffered justification, place unfair disadvantage negotiations unions. justification steelworkers "could hardly deemed miners negotiate steel companies until financial crisis, thereby causing yield economically unsound demands bankruptcy." reacting appellants' hyperbole speaking crises bankruptcy, pushing bankruptcy rationally viewed undesirable. costs go laid-off qualified collect unemployment. stop rising settle return work. Qualification acts lever increasing pressures leave existence situations locked employees, move. Regardless wisdom lack approach taken 53 third offered protecting continuing systems. supra , 482; Hearing H. R. 6900 94th Sess. (1975). protection State. "rational" random means, elimination odd letters surnames. Here, tracks unquestionably equal equation. 54 paragraph declaring violating Clause, process. denial process, cf. Mathews Eldridge, 424 319, 893, unable judgment 56 ordered. 57 REHNQUIST case. December amended read: "(D) Notwithstanding (A) section, following conditions: "(1) For week administrator that: "(a) No if: (i) employment employer, exists, shown financing, participating in, (ii) business within engaged wholly participates stops established indefinite recalled prior separated obtained bona fide job while still progress, render ineligible benefits." (amended bill 173) effective Dec. 2, 1975. added subdivision (i). Thus furlough effected qualify advised, retroactive. 16. referrals Review stayed 4. At litigation 4141.29(D)(1) conflicts Relations 151 seq. today relationship between determined, defined overbroad. "Hodory approximately 1250 Steelworkers own, (and) defendants clause despite respects Members included fellow Republic's disposition reach claim. intervene purposes taking here, motions denied. Opposition Jurisdiction (of Court), defendants-appellants lie Pleas. special Board's review Supreme 4141.28(N) (1973) (claims 500 persons). Neither suggest, action. confirmed orally 35, 5-12, 27-29, 47-49. Berryhill held, rule "or equity, comity, federalism" stands, 575, 1696, dismissal suit proceeding Optometry, alleged, concluded, bias incompetent adjudicate issues. 575-577, 1696-1697. clear. expeditious route available. n.6, supra. conclusion, erred refusing grounds. deference material alteration surely defer wishes adjudication. ruling withheld resolution instant Section disqualified: "For commission partial stoppage establishment employed, subsection satisfaction "1. He financing caused work; "2. belong which, commencement stoppage, occurs, whom dispute; "and further separate branches work, commonly conducted businesses premises, departments department premises." Fierst & Spector, Disputes, Yale L.J. 461 (1940); Haggart, During Neb.L.Rev. 668 (1958); Shadur, "Labor Dispute" Disqualification, U.Chi.L.Rev. 294 (1950); Comment, Dispute Disqualification Under St.L.J. 238 (1949), therein. Annot., 63 A.L.R.3d 88 (forbidding cancellation) prescribe 'otherwise eligible.' example, proposal available specifying as, voluntary quitting, "Your (in report word 'the') committee laws devised responsible unemployment, without undermining basic insurance income floor beyond control. Severe cancel earned monetary entitlement, harmony system." H.R.Rep.No. 91-612, 18-19 (1969); S.Rep.No. 91-752, 23-24 (1970), U.S.Code Cong. Admin.News 3606, 3627. See, 3304(a)(5), start provided: "(5) otherwise new "(A) vacant lockout, "(B) wages, hours, substantially favorable prevailing locality; "(C) being join company resign refrain joining organization." 695; Emergency 1971, 811; 1974, 1869; 2667. creates impermissible "irrebuttable presumption." assumptions. assume measure "innocence." Then represents presumption innocent. measuring innocence, implication irrebuttable discuss below, innocence worker.

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