Document: 490 U.S. 107 109 S.Ct. 1668 104 L.Ed.2d 98 MASSACHUSETTS, Petitionerv.Richard N. MORASH. No. 88-32. Argued Feb. 21, 1989. Decided April 18, Syllabus Petitioner Commonwealth issued criminal complaints charging that, in failing to compensate two discharged bank vice presidents for vacation time they accrued but did not use, respondent president had violated a Massachusetts statute making it unlawful an employer pay employee his full wages, including payments, on the date of discharge. Respondent moved dismiss ground that bank's policy constituted "employee welfare benefit plan" under § 3(1) Employee Retirement Income Security Act 1974 (ERISA), and prosecution therefore ran afoul 514(a) ERISA, which pre-empts "any all State laws insofar as . relate any plan." The trial court reported preemption question Appeals Court decision. For purpose answering question, parties stipulated agreed employees lieu unused time, such payments were made out general assets lump sums upon employment termination. Supreme Judicial transferred case its docket own initiative held was pre-empted. Held: A paying their does constitute within meaning action enforce is foreclosed by 514(a). Pp. 112-121. (a) Although defines plan maintained providing benefits," reference benefits—when viewed context many other, related types benefits listed section light ERISA's primary purposes preventing mismanagement accumulated funds failure from funds—must be understood ordinary typically are fixed, due at known times, dependent contingencies outside employee's control, payable employer's assets; rather, encompasses only those accumulate over period either right contingent some future occurrence or bears risk different risk. regulations Secretary Labor, entitled deference reasonable interpretations official specifically authorized define terms, adopt this understanding numerous "payroll practices" plans," payment (1) rather than trust fund (2) premium rates work during special periods holidays w ekends, position has consistently followed even when carried later years. 112-119. (b) There no merit respondent's argument exempted practice" Secretary's because allowed option defer until neither regulation explicitly covers precise practice, reasons treating payroll practices equally applicable here, cannot transformed into solely use days prior formal Moreover, except fact deferral, much part regular basic compensation overtime salary while vacation; amount same kind available holiday weekend work; and, unlike normal severance pay, 119-121. 402 Mass. 287, 522 N.E.2d 409, reversed remanded. STEVENS, J., delivered opinion unanimous Court. Carl Valvo, Boston, Mass., petitioner. Jason Berger, respondent. Justice STEVENS 1 This requires us determine whether company's constitutes (ERISA Act), 88 Stat. 833, amended, 29 U.S.C. 1002(1), Act's broad pre-emption provision. 2 * In May 1986, petitioner, Massachusetts, Boston Municipal against respondent, Richard Morash, Yankee Bank Finance Savings (Bank). charged Morash with violations Payment Wages Statute, Mass.Gen.Laws c. 149 148 (1987).1 3 Under law, required Similar wage statutes have been enacted 47 other States,2 District Columbia,3 United States,4 half these include pay. filed alleged failed use. 4 statute, applied complaints, pre-empted ERISA. He argued Bank's Act, State's him comply 1144(a), plan."5 Without ruling motion, judge decision; then initiative. oral written agreements stemming handbooks, manuals, memoranda, "such assets" termination employment. 5 409 (1988). found plain language earlier decision Barry v. Dymo Graphic Systems, Inc., 394 830, 478 707 (1985), plan, fund, program participants benefits. It rejected Commonwealth's promulgated Labor (Secretary),6 excepted definition if included lump-sum discharge akin covered woul necessary maintain records relating employees' plus need benefits, appropriate treat promise "plan." concluded 514, excluded coverage provision saving "generally law." ERISA 514(b)(4), 1144(b)(4). 6 Because federal decided important one courts disagreed,7 we granted certiorari, 488 815, 53, 102 31 We now reverse. II 7 passed Congress safeguard abuse finance various Fort Halifax Packing Co. Coyne, 482 1, 15, 2211, 2219, 96 (1987). "comprehensive reticulated statute," Nachman Corp. Pension Benefit Guaranty Corporation, 446 359, 361, 100 1723, 1726, 64 354 (1980), contains elaborate provisions plans. sets forth reporting disclosure obligations plans, imposes fiduciary standard care administrators, establishes schedules vesting accrual pension Metropolitan Life Ins. 471 724, 732, 105 2380, 2385, 85 728 (1985). Suits terms recover wrongfully withheld arise law can brought without regard controversy. See Firestone Tire & Rubber Bruch, 489 101, 108, 948, 953, 103 80 (1989). 8 clearly set Act. plans "an plan," both. 3(3), 1002(3). An turn, defined as: 9 "[A]ny heretofore hereafter established organization, both, extent beneficiaries, through purchase insurance otherwise, (A) medical, surgical, hospital event sickness, accident, disability, death unemployment, apprenticeship training programs, day centers, scholarship funds, prepaid legal services, (B) described 186(c) title (other pensions retirement death, provide pensions)." 3(1), codified, 1002(1).8 10 further "plan, program" "vacation benefits" specify every falls ambit. 11 words may surely read encompass form employee. multiemployer created union members who several employers course year, see, e.g., Franchise Tax Bd. Cal. Construction Laborers Vacation Trust Southern Cal., 463 4, n. 2, 2841, 2844, 77 420 (1983), undoubtedly scope addition, creation separate would subject single regulatory California Hospital Assn. Henning, 770 F.2d 856, 861 modified, 783 946 (CA9), cert. denied, 477 904, 106 3273, 91 564 (1986).9 do believe, however, here plan. 12 interpretation governed familiar principles " 'words grouped list should given meaning,' Schreiber Burlington Northern, 472 8, 2458, 2462, 86 (1985) (quoting Securities Industry Board Governors, FRS, 468 207, 218, 3003, 3009, 82 158 (1984)), "in expounding [are] guided sentence member sentence, look whole object policy." Pilot Dedeaux, 481 41, 51, 1549, 1555, 95 39 enacting Congress' concern funds. Assn., supra, 859.10 To end, extensive reporting, disclosure, duty req irements insure possibility expectation defeated poor management administrator. depend present none risks intended address. If there danger expectations, expectations wages services performed—a chose regulate 13 conclusion supported viewing isolation accompany give meaning. Section subjects services. distinguishing feature most contingency control 40 Fed.Reg. 24642 (1975). Thus, example, employment, Holland Industries, 772 1140 (CA4 1985), summarily aff'd sub nom. Brooks 901, 3267, 559 (1986); Gilbert 765 320 (CA2 Roberts 558 (1986). analogous unlikely requirements nature basis election 14 Secretary, "accounting, technical, trade terms," 505, 1135,11 whose views deference, Chevron U.S.A. Inc. Natural Resources Defense Council, 467 837, 843, 2778, 2782, 81 694 (1984); Watt Alaska, 451 259, 272-273, 101 1673, 1680-1681, 68 (1981); Udall Tallman, 380 16, 792, 801, 616 (1965), also so statute. Notice Proposed Rulemaking published shortly after effective identified distinction between programs compensation, covered: 15 "The anticipates issuanc will make clear certain (whether pursuant collective bargaining agreement not) paid directly filing duties Title I Examples receive treatment shift premiums, Sunday jury military duty, make-up absent account illness excused absences." 42236 (1974) (emphasis added). 16 subsequently proposed excluding performed night sick leave benefit. 24642-24643 explained: 17 "[P]aid vacations treated associated salary, triggered hospitalization. abuses impetus reforms area, indication coverage." Ibid. 18 adopted significant modification. They practices," "out [an] ERISA.12 regulations, term weekends.13 adhered years.14 19 contrary interpretation, routine policies profound consequences. Most States type employees.15 put choice complying statute's detailed discontinuing practice compensating time. extension claims vastly expand jurisdiction courts, forum grievance.16 Finally, displace state vesting, funding, participation rights benefits; funding apply §§ 201(1), 301(a), 1051(1), 1081(a), actually less protection assets. Note, 87 Colum.L.Rev. 1702, 1718 (1987).17 traditionally regulated Absent far-reaching consequences, reluctant significantly interfere "the spheres governmental authority preserved our federalist system." U.S., 19, S.Ct., 2221. III 20 argues Department exempting construction Brief 11. agree. issue case, premiums chosen take vacation, regulation; Shea Wells Fargo Armored Service Corp., 810 372, 377 1987). 21 deferred, vacation. end elects additional instead he she receiving work. affect character compensation. Unlike 22 reaching conclusion, emphasize before us—and rely—concern entirely situation presented group guarantee laborers regularly jobs another. Employees beneficiaries face far greater come paychecks. sufficient determination administration vacatio possess characteristics statute.18 23 judgment reversed, remanded proceedings inconsistent opinion. 24 ordered. Gen.Laws (1987) provides, pertinent part: "Every person having service shall weekly each earned .; word 'wages' agreement." Alaska Stat.Ann. 23.05.140 23.05.340 (1984 Supp.1988); Ariz.Rev.Stat.Ann. 23-350 23-361 (1983 Ark.Code Ann. 11-4-401 (1987); Cal.Lab.Code 227.3 (West Supp.1989); Colo.Rev.Stat. 8-4-101 8-4-126 Conn.Gen.Stat. 31-71a 31-71i (1987 Del.Code Ann., Tit. 1101 1115 (1985); Ga.Code 34-7-2 (1988); Haw.Rev.Stat. 388-1 388-13 Idaho Code 45-601 45-615 (1977 Ill.Rev.Stat., ch. 48, &Par; 39m-1 39m-15 Ind.Code 22-2-9-1 22-2-9-7 Iowa 91A.2 91A.13 Kan.Stat.Ann. 44-313 44-327 Ky.Rev.Stat.Ann. 337.010 337.070 (Baldwin 1986); La.Rev.Stat.Ann. 23:631 1985 Me.Rev.Stat.Ann., 26, 621-626 Md.Ann.Co e, Art. 100, 94 Mich.Comp.Laws 408.471 408.475 Minn.Stat. 181.74 Miss.Code 71-1-35 71-1-53 (1972 Mo.Rev.Stat. 290.080 290.110 Mont.Code 39-3-201 39-3-215 Neb.Rev.Stat. 48-1228 48-1232 Nev.Rev.Stat. 608.005 608.060 N.H.Rev.Stat.Ann. 275:42 275:55 N.J.Stat.Ann. 34:11-4.1 34:11-4.11 1988); N.M.Stat.Ann. 50-4-1 50-4-12 N.Y.Lab.Law 190 198-c (McKinney 1986 N.C.Gen.Stat. 95-25.2 95-25.25 N.D.Cent.Code 34-14-01 34-14-13 Ohio Rev.Code 4113.15 (1980); Okla.Stat., 40, 165.1 165.9 Ore.Rev.Stat. 652.110 652.405 Pa.Stat.Ann., 43, 260.2a 260.11a (Purdon R.I.Gen.Laws 28-14-1 28-14-30 S.C.Code 41-10-10 41-10-110 (Supp.1988); S.D. Codified Laws 60-11-9 60-11-15 (1978); Tenn.Code 50-2-103 (1983); Tex.Rev.Civ.Stat.Ann., Arts. 5155 5159 (Vernon 1987); Utah 34-28-2 34-28-14 Vt.Stat.Ann., 341-345 Va.Code 40.1-29 Wash.Rev.Code 49.48.010, 49.48.020 W.Va.Code 21-5-1, 21-5-4 (1985 Wis.Stat. 109.01 109.11 (1987-1988); Wyo.Stat. 27-4-101 27-4-105 D.C.Code 36-101 36-110 (1981). See, 46 596. Griffin Oceanic Contractors, 458 564, 572, 3245, 3250, 73 973 (1982). 514 "(a) Except provided subsection subsection, subchapter chapter supersede "(b) "(4) Subsection generally State." Payroll practices. chapter, 'employee plan' 'welfare include— "(3) assets, employee, although physically mentally able perform her medical (such pregnancy, physical examination psychiatric treatment) performs duties; example— "(i) holiday, induce favorable business reasons." CFR 2510.3-1(b)(3) Compare National Steel 791 1132 Blakeman Mead Containers, 779 1146 (CA6 1985) (both holding plan), 372 856 Golden Bear Family Restaurants, Murray, 144 Ill.App.3d 616, Ill.Dec. 459, 494 581 (1986) (all ERISA). title" "pooled similar benefits." 186(c)(6). pooled "a thus 1002(1)(B), exclusion render clause surplusage. Clause (A), includes Dept. Opinion Letter 77-84A (Nov. 7, 1977). dispositive (A). As Ninth Circuit noted: "Many incorporated 1002(1) cross-reference already 1002(1). Thus evident concerned duplication, assuring 1002(1)." 946, Private Welfare Plan Legislation: Hearings H.R. 1045 et al. General Subcommittee House Committee Education 91st Cong., 1st 2d Sess., 470-472 (1970) (testimony concerning funds); 120 Cong. Rec. 4279-4280 (remarks Rep. Brademas); id., 4277-4278 Perkins); 119 30003 (1973) Sen. Williams). 894, "Subject 109, prescribe finds carry title. Among things, accounting, used provisions. ." 6, supra. "(b)(1) rate excess performance circumstances, as— Overtime "(ii) Shift "(iii) Holiday "(iv) Weekend premiums." 2510.3-1(b)(1) 79-48A (July 30, 1979) (sick leave). 1988 survey reflects percent 31,000,000 medium large establishments. Bureau Statistics, BLS Reports Benefits Medium Large Firms 1988, pp. (Apr. 1989) (press release). Another 833 companies manufacturing nonmanufacturing industries them for, of, vacations. Chamber Commerce, p. 1983 agencies year resolve more 19,000 claims, involving $7.5 million. Loyola U.Chi.L.J. 387, 422 Many see 1714 (1987), administrative resolution U.Chi.L.J., 421-422. imperil mechanisms designed employees. occasion address alternative 149, State"

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